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Fed faces disclosure lawsuit

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Bloomberg News has filed a federal lawsuit seeking the disclosure of details regarding almost $2 trillion in emergency loans from American taxpayers. The Federal Reserve is refusing to identify the recipients, which, according to Bloomberg, defies congressional demands for transparency in the wake of a $700 billion bailout and recently transformed legislation.

Two months after Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson agreed to comply with congressional demands for transparency, the Fed is lending “far more than that in separate rescue programs that didn’t require approval by Congress … Americans have no idea where their money is going or what securities the banks are pledging in return,” according to Bloomberg.