Which U.S. government rescue program was created in 2008 to buy troubled financial assets?

The Troubled Asset Relief Program was the U.S. government rescue program created in 2008 to buy troubled financial assets.

Congress authorized TARP through the Emergency Economic Stabilization Act, signed on October 3, 2008. The program was designed to stabilize the financial system during the global crisis by allowing the Treasury to purchase or insure troubled assets, especially mortgage-related securities. Its authority was later used substantially for capital injections into banks and support for other parts of the financial system.

TARP is often described simply as a bank bailout, but its interventions covered more than purchases of distressed securities. The program also included assistance to automobile manufacturers and support for the American International Group rescue. It became politically controversial because taxpayers funded emergency actions while many households faced foreclosure and unemployment.