Scrutiny Sparks New Questions For TARP Participants

Law360, New York (October 30, 2008, 12:00 AM EDT) -- Banks receiving federal funds under the U.S. Treasury's Capital Purchase Program are under growing pressure to explain exactly how that money is being put to work, exposing potential political pitfalls for banks receiving a capital injection and sparking new questions for banks still going through the application process.

While the Treasury clearly intended banks to use the $250 billion equity purchase program to increase their lending capacity, the government has yet to make that an explicit condition of program participation.

But with congressional leaders anxious to...
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