A large majority of US banks claim that government bail-out money has allowed them to write new loans to customers, while a minority has used it to buy rivals, according to a new report by the programme's watchdog.
The audit by Neil Barofsky, the special inspector-general for the troubled asset relief programme (Sigtarp), reveals a continuing argument with the US Treasury over how much information should be disclosed by recipients of the money.
Some 83 per cent of the 360 recipients surveyed by the Sigtarp team said they had used funds from the government for lending.
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