Troubled Asset Relief Program (TARP) - Financial definition
Financial acronyms
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Country
: United States of America
Concise definition of the term Troubled Asset Relief Program
The Troubled Asset Relief Program, also known as the Paulson plan, was a financial rescue plan proposed by then-U.S. Treasury Secretary Henry Paulson in 2008 as a response to the subprime mortgage crisis and aimed to stabilize the U.S. financial system by purchasing troubled assets from financial institutions.
Comprehensive definition of the term Troubled Asset Relief Program
The plan was passed as the Emergency Economic Stabilization Act of 2008 and injected $700 billion into the financial system to prevent a complete collapse.