WASHINGTON — William Dudley, the president of the Federal Reserve Bank of New York, recognized Saturday that investors have been hesitant to participate in the Term Asset-Backed Securities Loan Facility out of concern that borrowing money from the central bank might arouse scrutiny from Congress.

"Some investors are apparently reluctant not because the economics of the program are unattractive, but because of worries about what participation might lead to," he said in prepared remarks at a Vanderbilt University conference.

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