Regulators Pushing Banks To Step Up Their Lending

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From CNBC: "Federal bank regulators, seeking to address criticism about the government's $700 billion bailout plan, have issued new guidance to banks encouraging them to continue lending to credit worthy borrowers.

The guidelines, issued Wednesday by the Federal Reserve and three other federal banking regulators, also encourage institutions to work with mortgage borrowers to avoid defaults.

In addition, the guidelines encourage the banks to set dividend payments for shareholders and compensation for executives with the current crisis in mind.

The guidelines seek to address criticism that banks obtaining funds from the $700 billion rescue plan could simply use the money for their own purposes rather than helping struggling homeowners and the overall economy. ...

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