As the banking industry continues to try to narrow the scope of any mortgage bankruptcy legislation, a key ally in their battle might be Sen. Evan Bayh.

The Indiana Democrat, a moderate, said in a brief interview Thursday that he is looking to craft a bipartisan compromise, possibly with Sen. Arlen Specter, R-Pa., to restrict a judge's ability to cram down primary mortgages to the riskiest existing loans. Sen. Bayh said he would like to work with Sen. Dick Durbin of Illinois, the No. 2 Democrat in the Senate, who has been leading the reform charge, to narrow Sen. Durbin's bill to target subprime and alternative-A loans along with a handful of other limits.

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