Senate OKs road map toward deal on loans

WASHINGTON — Top Senate leaders agreed Tuesday to start on a plan to fix the nation's home-foreclosure crisis that can win the support of Democrats and Republicans.

The pact between Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., ended weeks of partisan bickering over what to do about the crisis.

Reid agreed not to bring up a Democratic plan containing a controversial provision to give bankruptcy judges power to cut interest rates and principal on troubled mortgages. That plan stalled a month ago.

Instead, Senate Banking Committee Chairman Chris Dodd, D-Conn., and the panel's top Republican, Richard Shelby of Alabama, were instructed to forge a compromise by today.

Senators in both parties approved the arrangement 94-1 on a procedural vote. Sen. Jim Bunning, R-Ky., was the sole "nay" vote.

The measure is likely to include a plan by Dodd to have the Federal Housing Administration guarantee perhaps $400 billion worth of refinanced loans if lenders reduce loan amounts to reflect reduced home values; a plan to let states issue $10 billion in tax-exempt bonds to refinance subprime loans and a plan for $200 million in new money for debt counselors to help homeowners negotiate with lenders.

Oil execs defend profits, tax breaks

Top executives of the country's five biggest oil companies said Tuesday they know record fuel prices are hurting people, but they said it's not their fault and their profits are in line with those of other industries.

Appearing before a House committee, the executives of Exxon Mobil, Royal Dutch Shell, BP, Chevron and ConocoPhillips were pressed to explain why they should continue to get billions of dollars in tax breaks when they made $123 billion last year and motorists are paying record gasoline prices at the pump.

"On April Fools' Day, the biggest joke of all is being played on American families by Big Oil," Rep. Edward Markey, D-Mass., said.

J.S. Simon, senior vice president of Exxon Mobil, which made a record $40 billion last year, said, "We depend on high earnings during the up cycle to sustain ... investment over the long term, including the down cycles."

Domestic partner allowed on flight

The Pentagon at first blocked Wisconsin Rep. Tammy Baldwin's domestic partner from traveling on a military plane with a congressional delegation on a trip to Europe but gave in after House Speaker Nancy Pelosi intervened.

The Pentagon said it was following House rules, which do not define domestic partners as spouses. Defense Secretary Robert Gates reversed the decision that would have kept Baldwin's partner, Lauren Azar, off the plane after being contacted by Pelosi, D-Calif.

Seattle Times news services