Congress may require more lending for bailout help

[Ron Burgundy]

WASHINGTON – Congress is looking at requiring banks and other financial institutions to increase their lending to qualify for the second half of a $700 billion bailout program.

Lawmakers complained at a Senate Banking Committee hearing Tuesday that banks have not used the $163 billion that they've already received or been promised by the government to open up their credit lines for more landing. In New York, Sen. Charles Schumer said: "In these uncertain and difficult times, banks are inclined to hoard rather than to deploy capital."

Schumer said that he and other lawmakers plan to require that banks do more lending to share in the second $350 billion of the program. The Treasury Department has to get fresh approval from Congress before it can spend any of that money.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) — Executives from four financial institutions that have received a total of $75 billion in federal bailout funds are promising they won't use the money to pay their executives and employees.

The executives made the pledge Thursday in an appearance before the Senate Banking Committee. Lawmakers have reacted in anger to reports that banks might use the bailout money to pay bonuses to their executives, acquire other banks or finance other business takeovers.

Jon Campbell, regional banking president for Wells Fargo & Co., told the committee his company doesn't need the government's investment to pay for bonuses or compensation and will not use it for that.

Executives from Goldman Sachs Inc., Bank of America and JP Morgan Chase & Co. made similar pledges.

source: AP - http://news.yahoo.com/s/ap/20081113/ap_on_go_co/meltdown_banks [link]