Banks to monitor bailout money

Federal regulators are asking financial institutions to monitor their use of government money received under the $700 billion rescue plan and other support.

WASHINGTON (AP) — Federal regulators are asking financial institutions to monitor their use of government money received under the $700 billion rescue plan and other support.

Banks and other financial institutions should track how the federal money or guarantees they received helped them boost “prudent lending” and efforts to help at-risk borrowers avoid foreclosures, the Federal Deposit Insurance Corp. said Monday in a directive issued to the roughly 5,100 state-chartered banks and savings and loans for which it is the primary regulator.

Tags: bailout, banks, economy, monitor

More from around the web