The federal government has handed out almost all of the $350 billion Congress approved as the first installment on a $700 billion financial rescue plan. But before Congress releases the last half of the fund, questions are being asked about whether the funds are being used appropriately by the banks and financial institutions receiving them. That is hard to know.

Despite a lot of talk and promises about oversight and transparency, there is little of it with growing concerns that the money is not being used as intended. The Treasury has used about $250 billion to buy equity in banks with the expectation that the infusion of capital would be used to increase lending.

However, some banks are reportedly using the bailout funds to merge with or purchase other banks, pay dividends to stockholders or subsidize bonuses and executive pay raises.

At a hearing Thursday, representatives from Wells Fargo & Co., Goldman Sachs Inc., Bank of America and JP Morgan Chase & Co. said they were not using government funds to pay for executive compensation.

Sen. Charles Schumer, D-N.Y., wants to require banks to do more lending rather than hoarding the revenue and he called for "any new capital injections" to have tougher requirements.

Provisions establishing independent oversight by both the White House through a special inspector general and a congressional panel have yet to be implemented.

Critical of inaction, Iowa Sen. Charles Grassley, ranking Republican on the Finance Committee, said, "Considering how taxpayers' money around Washington isn't respected, a day shouldn't go by without having an inspector general checking on it."

Banks say they are using the funds to make loans, but what is needed is greater transparency in reporting to assure taxpayers that their money is used as intended.

Congress can and should impose more requirements on how the banks use their funds. The public has a right to demand the transparency and accountability it was promised.