Sens. Ask If Banks Are 'Hoarding' Bailout Billions

Law360, New York (October 21, 2008, 12:00 AM EDT) -- With homes foreclosing in the U.S. at the rate of 10,000 per day, lawmakers on Thursday asked top finance officials on Capitol Hill whether big banks in receipt of billions in federal capital were “hoarding” the money instead of issuing or refinancing individual mortgages.

There are concerns among regulators that banks are seeking to “build an empire instead of making loans," according to Federal Deposit Insurance Corp. Chairman Sheila C. Bair.

To be sure, several top banking officials have been quoted in recent days as saying...
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