Fed's $1.2 Trillion In Financial Sector Loans 'A Classic Case Of Moral Hazard'

Fed's $1.2 Trillion In Financial Sector Loans 'A Classic Case Of Moral Hazard'

At the same time, and in the years that followed, the Federal Reserve was undertaking its own rescue operation, in the form of private, previously undisclosed loans to banks and other institutions -- lending as much as $1.2 trillion, nearly twice the amount of the Treasury bailout, according to a data analysis performed by Bloomberg News and published on Monday.