Troubled Asset Relief Program

The Troubled Asset Relief Program (TARP) was a government initiative implemented during the 2008 financial crisis to stabilize the economy. It involved the U.S. government purchasing or guaranteeing risky assets, like mortgage-backed securities, from banks and financial institutions. The goal was to restore confidence in the financial system, prevent bank failures, and promote lending. TARP provided approximately $700 billion in funds, with some money later recovered. It was a key part of the broader intervention to address the severe economic turmoil and prevent broader economic collapse.