Congress is considering measures that could influence the banking industry's future, including tougher mortgage laws and breaking up financial institutions deemed "too big to fail." The measures, with one noted exception, put the financial industry on the defensive. One key battle is over legislation that would allow bankruptcy judges to modify mortgage terms for struggling homeowners. "Bankruptcy should only be used as a last recourse when every other effort to modify a loan has been exhausted," said Scott DeFife, senior managing director of government affairs for SIFMA.
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