Trouble Asset Relief Program (TARP)

The Troubled Asset Relief Program (TARP) was a U.S. government initiative launched in 2008 to stabilize the financial system during the crisis. It involved the government providing financial support to banks and financial institutions by purchasing or insuring troubled assets, such as mortgage-backed securities, to restore confidence and ensure they had enough capital. The goal was to prevent further bank failures, protect savings, and promote economic stability. TARP also included support for the auto industry and housing markets. While controversial, it was a key response aimed at mitigating the worst effects of the financial crisis.