Emergency Economic Stabilization Act

The Emergency Economic Stabilization Act, passed in 2008, was a response to the financial crisis. It aimed to restore stability to the U.S. economy by allowing the government to purchase or insure troubled assets from financial institutions. This was intended to free up credit and support lending, preventing further economic decline. The act created the Troubled Asset Relief Program (TARP), which allocated $700 billion to assist banks and other financial entities. Overall, the goal was to stabilize the financial system and build public confidence in the economy during a critical time.