TARP (Troubled Asset Relief Program)

The Troubled Asset Relief Program (TARP) was a financial initiative created by the U.S. government in 2008 during the financial crisis. Its purpose was to stabilize the economy by providing funds to banks and other financial institutions that were struggling under the weight of bad loans and failing assets. TARP aimed to restore confidence in the financial system, allowing banks to lend more freely again. The program used taxpayer money but ultimately allowed many institutions to recover, with most funds being repaid over time.