Hey, guys, free tip: next time write it into the legislation. - Ed.
Nov. 8 (Bloomberg) -- Senate Democrats are demanding that the U.S. Treasury force banks participating in the government's $700 billion financial rescue plan to show they are using the funds to increase lending.
Senators Charles Schumer of New York and Robert Menendez of New Jersey wrote a letter yesterday urging Treasury Secretary Henry Paulson to issue rules requiring banks accepting public funding to lend to companies and consumers rather than using the money to finance takeovers.
``Loans must not be used to acquire healthy banks, hoard in their coffers, or pay shareholder dividends,'' the two Senate Banking Committee members wrote to Paulson. ``We are also troubled by the fact that the Treasury Department appears to be taking a `hands off' approach to this issue, preferring instead to leave decisions solely up to the discretion of senior bank executives.''
