The Senate is officially in recess until Monday, April 20, but many senators are hard at work, trying to make - or break - the bankruptcy cram down reform bill.

At stake for banks: increased FDIC insurance, perhaps lower FDIC premiums (banks have to pay for FDIC insurance, and because of the many bank failures over the past year, rates are set to skyrocket). But for the rest of us, the American people, the stakes are much greater.

According to a few news reports, a deal may be in the works to get the banking industry to call off its dogs regarding the cram down, in return for changes to the FDIC system that would benefit banks. The possible political fallout is that banks would alienate the senators who are currently holding up the cram down bill, so it is still touch and go at this point.

Everyone understands that this economy will not stabilize unless and until we do something to stop the continuing tsunami of foreclosures. Two thirds of the American people favor helping homeowners remain homeowners, and unlike most recent efforts, the cram down bill will not cost taxpayers one red cent.

The problem? The myopia of the lending industry, and their cronies in Washington. I found a great article in the Miami Herald - it's an interview of the local chief bankruptcy judge, the Honorable A. Jay Cristol. I encourage readers to share this article with anyone (especially their Senators) who, for whatever reason, think that cram downs hurt banks or other borrowers.

Judge Cristol doesn't pull punches: he sees banks as being greedy and stupid in opposing cram downs, because banks make more money through a cram down than they do through foreclosure. Given that banks are supposed to be about making money, it makes no sense to oppose a solution that makes them more money.

Let's all hope that the Senate can muster enough votes, or better yet, use some leverage with the banking industry, to get this important legislation passed right away. Closing this loophole (remember, every other type of secured loan is already subject to well-established cram down rules) is long overdue, and our economy's recovery could be riding on it.