Citi backs, JPMorgan fights law to ease home loan terms

It's a paradox: People with the least ability to pay loans are charged the highest interest rates.

Now, two giant consumer lenders have split over a proposal that would let bankruptcy judges cut home loan rates for distressed borrowers. 

Citigroup backs the plan -- while JPMorgan Chase & Co. chief executive Jamie Dimon opposes it, warning it will make banks want to lend less.

Both banks are being supported by taxpayer investments as the value of their mortgage-backed securities and other assets have fallen.

To read a Financial Times story about the debate over the mortgage-revision law, copy this address to your browser:

http://www.ft.com/cms/s/0/ba131bc2-e2f6-11dd-a5cf-0000779fd2ac.html


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