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Banks Ease Credit for Themselves But Not You

Rep. Barney Frank, warned banks last week that they faced the wrath of Congress if they used bailout money to pay dividends and bonuses or buy out other institutions. (Getty Images photo by Mark Wilson) WASHINGTON - If you're a financial institution, it has become a little easier to borrow money. But for most of the rest of us, it's tougher than ever.

It was the freeze-up of the wholesale lending markets used by banks to fund day-to-day operations that caused the financial system to break down in September. That crisis has eased significantly, thanks to government intervention to guarantee loans and prop up financial institutions.