Troubled Asset Relief Program (TARP)

The Troubled Asset Relief Program (TARP) was a government program enacted by the United States government in response to the subprime mortgage crisis. The program was designed to purchase distressed assets from financial institutions, stabilize the financial system, and help prevent a major economic collapse.

The TARP was authorized by the Emergency Economic Stabilization Act of 2008 (EESA), which was signed into law by President George W. Bush on October 3, 2008. The program was initially authorized to spend up to $700 billion, but this was later reduced to $475 billion.

The TARP was administered by the Troubled Asset Relief Program Office (TARP Office), which was established within the Department of the Treasury. The TARP Office was responsible for purchasing distressed assets from financial institutions, providing financial assistance to banks, and making loans to automakers.

The TARP was controversial from the start. Critics argued that the program was too expensive and that it would not be effective in preventing a major economic collapse. However, the program did help to stabilize the financial system and prevent a meltdown.

The TARP was ultimately terminated in October 2010. The program had spent a total of $426.4 billion, and it had generated a profit of $15.3 billion.

The TARP was a complex and controversial program, but it played a significant role in preventing a major economic collapse. The program helped to stabilize the financial system and it provided much-needed assistance to financial institutions and automakers.