Bank execs tell Senate panel they're using bailout money for loans - WKOW 27: Madison, WI Breaking News, Weather and Sports

Bank execs tell Senate panel they're using bailout money for loans

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WASHINGTON (AP) -- Executives from some of the nation's largest banks are trying to assure the Senate Banking Committee that they're using the money from the federal financial bailout to make more loans and help homeowners avoid foreclosure.

  One official from JP Morgan Chase told the panel that a portion of the $25 billion capital infusion it received is being deployed to "expand the flow of credit."

  He said it was also being used to rewrite residential mortgages for up to 400,000 families.

  He and executives from Goldman Sachs, Bank of America and Wells Fargo told the committee that none of the $85 billion they've received collectively is being used for executive pay.

  A Wells Fargo official says his bank "doesn't need the government investment to pay for bonuses or compensation."

  Still, lawmakers have been pressing hard for commitments to more lending.

  Sen. Christopher Dodd, the committee's chairman, warned that the $700 billion in emergency funding was not for "hoarding capital and acquiring healthy banks."

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