Why is the Bank Bailout Money not Loosening the Credit Market?

...rather, they are using it to purchase other banks that are a real bargain in these troubled times. The banks are also hoarding cash and buying up Treasury bonds to shore up their own stability. The usage of the money for credit loosening was recommended by the Treasury Secretary....with no enforcement clause, of course. Hmmm. Other media reference at:

• http://blog.cleveland.com/business/2008/10/keycorp_plans_to_use_bailout_m.html
• http://www.propublica.org/article/banks-signal-govt-billions-will-be-used-for-mergers-1027
• http://www.usatoday.com/money/economy/2008-11-12-banking-guidance_N.htm