WASHINGTON -- A flurry of activity took place in Washington Tuesday surrounding the financial rescue plan and about why Cleveland's National City Bank was left out.

Northeast Ohio Congressman Steve LaTourette put the nation's financial leaders on the hot seat, questioning the recent sale of National City to Pittsburgh-based PNC.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernake were both questioned during the hearing.

The fate of National City Bank could depend on whether Congress takes a closer look at the sale to PNC and the questionable role federal regulators played in making it happen.

"A bank that has existed since the American Civil Wars, survived the Great Depression can't survive eight weeks of the TARP," said LaTourette, referring to the Troubled Asset Relief Program passed by Congress last month .

LaTourette questioned whether National City was forced onto the auction block by federal regulators who purposely denied it access to the $700 billion bailout of the financial industry, and if Treasury Department Comptroller John Dugan, a former lawyer for PNC, effectively twisted the arm of National City Bank Chairman Peter Raskind.

LaTourette read into the congressional record a Wall Street Journal report detailing talks between the two men about a possible bailout:

Dugan: "I'm happy to do that but first I want you to explore all merger and acquisition avenues."

Raskind: "We've been doing that but I want to apply for TARP."

Dugan: "Just keep doing it. Trust me."

"The fact of the matter is, the regulator told National City Bank to raise $3.5 billion in private capital. They raise seven and they are one of the best capitalized banks in the country and you guys wouldn't even take an application," said LaTourette.

LaTourette said talks with the federal government then got tough:

Dugan: "A merger and acquisition deal is your only alternative."

Raskind: "Wait, I though this was open to everybody."

Dugan: "That's all discretionary and right now you shouldn't be comfortable that it's available to you."

LaTourette said the sale to PNC may have been the lesser of the two evils.

"Will you personally look at the National City Bank situation and discuss it with Mr. Dugan?" said LaTourette.

"I believe based upon generally what I know that he made the right decision, but I am perfectly happy to talk about it with him some more," said Paulson.

LaTourette said he is not satisfied with the response he got from the Treasury Department, so he is seeking a meeting with the president.