Which 2008 U.S. government program bought troubled bank assets to stabilize markets after the financial crash?

The Troubled Asset Relief Program bought or supported troubled financial assets to stabilize U.S. markets after the 2008 crash.

Congress authorized TARP through the Emergency Economic Stabilization Act on October 3, 2008. The original proposal focused on purchasing mortgage-related assets, but the Treasury soon used much of the program to inject capital directly into banks by buying preferred stock.

TARP also supported automobile companies and programs related to mortgage relief. The government committed hundreds of billions of dollars, while the Congressional Oversight Panel and other bodies monitored its implementation. Many investments were later repaid, although the program remained controversial.

TARP was not the same as the Federal Reserve’s broader emergency lending operations or the 2009 economic stimulus law. Those policies addressed the crisis through different institutions and mechanisms.