Troubled Asset Relief Program (TARP)

The Troubled Asset Relief Program (TARP) was a financial initiative enacted by the U.S. government in 2008 during the financial crisis. It aimed to stabilize the economy by purchasing distressed assets, particularly from banks and financial institutions, to restore confidence in the financial system. By injecting capital into these organizations, TARP sought to prevent bank failures and protect jobs, ultimately helping to stabilize the economy. The program was controversial but was credited with preventing a deeper economic downturn. Over time, many of the funds were repaid, reducing the overall cost to taxpayers.