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Troubled Asset Relief Program (TARP)

Troubled Asset Relief Program (TARP) Definition

Troubled Asset Relief Program (or TARP) is a federal program that is part of the Emergency Economic Stabilization Act of 2008.  It was created by the Treasury fund to help stop the financial crisis of 2007-2008.  TARP gives the U.S. Treasury buying power of $700 billion to buy mortgage backed securities in order to create liquidity and un-seize money markets. 


Additional meaning of Troubled Asset Relief Program (TARP):

$250 billion was immediately released and the President must approve the next $100 billion.  Only Congress can release the last $350 billion.


RELATED CATEGORIES
Economy







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