Previous Page

Troubled Asset Relief Program (TARP)

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 27 Apr 2023

Table of Contents

Troubled Asset Relief Program (TARP)

The Troubled Asset Relief Program (TARP) was a government program created in 2008 to help stabilize the U.S. financial system during the global financial crisis. The program was authorized by the Emergency Economic Stabilization Act of 2008 and was administered by the U.S. Department of the Treasury. TARP was designed to purchase troubled assets from financial institutions in order to restore liquidity and stability to the financial system. The program was initially authorized to purchase up to $700 billion in assets, but the amount was later reduced to $475 billion.

History of TARP

TARP was created in response to the global financial crisis of 2008, which was caused by a combination of factors, including the bursting of the housing bubble, the collapse of the subprime mortgage market, and the failure of several large financial institutions. The program was intended to provide financial assistance to banks and other financial institutions in order to stabilize the financial system and prevent a further economic downturn. The program was initially authorized to purchase up to $700 billion in assets, but the amount was later reduced to $475 billion.

Comparison of TARP and Other Programs

Program Amount
TARP $475 billion
CARES Act $2.2 trillion
PPP $659 billion

Summary

The Troubled Asset Relief Program (TARP) was a government program created in 2008 to help stabilize the U.S. financial system during the global financial crisis. The program was authorized by the Emergency Economic Stabilization Act of 2008 and was administered by the U.S. Department of the Treasury. TARP was designed to purchase troubled assets from financial institutions in order to restore liquidity and stability to the financial system. The program was initially authorized to purchase up to $700 billion in assets, but the amount was later reduced to $475 billion. For more information about TARP, visit the U.S. Department of the Treasury website or the Federal Reserve website.

See Also

  • Emergency Economic Stabilization Act of 2008
  • Financial Crisis of 2008
  • Housing Bubble
  • Subprime Mortgage Market
  • CARES Act
  • PPP
  • Federal Reserve
  • U.S. Department of the Treasury
  • Liquidity
  • Stability

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly