Which U.S. legislation created the Troubled Asset Relief Program during the 2008 financial crash?

The Emergency Economic Stabilization Act created the Troubled Asset Relief Program during the 2008 financial crash.

Congress enacted the law on October 3, 2008, after an earlier version had failed in the House of Representatives. It authorized the U.S. Treasury to use up to $700 billion to stabilize financial markets by purchasing or insuring troubled assets and supporting key financial institutions.

TARP was created during a period of panic following the failures and rescues of major financial firms. Its implementation shifted substantially toward capital injections into banks rather than simply buying mortgage assets.

The program remains controversial because it used public funds to support the financial system, but the Congressional Oversight Panel and other reviews found that it helped limit systemic damage. TARP is distinct from Dodd-Frank, which became law in 2010 as a regulatory reform response.