Fed Won't Say Where $2T in Loans Went

The Federal Reserve has lent more than $2 trillion to financial institutions under programs without congressional oversight—and will not disclose to whom or under what terms, Bloomberg reports. The loans are separate from the $700 billion congressionally approved bailout package. Investors and citizens are concerned that the collateral given in these unregulated programs could be improperly valued.

The $700 billion, designed to relieve banks of toxic debt, has been used to buy safe, top-rated shares. Meanwhile, more than half of the $2 trillion in the other programs has left Fed coffers since mid-September, raising eyebrows. Banks and officials said revealing to whom and for what the Fed lends could unfairly influence financial solvency. (More Ben Bernanke stories.)