Which U.S. government program was created in 2008 to purchase troubled financial assets during the global stock-market crash?

The U.S. government program created in 2008 to purchase troubled financial assets during the global stock-market crash was the Troubled Asset Relief Program.

Known as TARP, the program was established by the Emergency Economic Stabilization Act, which President George W. Bush signed on October 3, 2008. Congress initially authorized up to $700 billion, although the program’s implementation changed as officials focused heavily on investing in financial institutions rather than simply buying mortgage securities.

TARP followed the failure or rescue of major financial firms and the freezing of credit markets. Its capital injections were intended to stabilize banks and restore lending during the crisis. Several large institutions later repaid their TARP investments, though the program remained controversial.

TARP is often confused with the broader 2008 financial rescue effort. It was one major federal program within a much larger response that also included Federal Reserve lending and other interventions.