Troubled Asset Relief Program - TARP
- Troubled Asset Relief Program - TARP
- A government program created for the establishment and management of a Treasury fund, in an attempt to curb the ongoing financial crisis of 2007-2008. The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up mortgage backed securities (MBS) from institutions across the country, in an attempt to create liquidity and un-seize the money markets. The fund was created by a bill that was made law on October 3, 2008 with the passage of H.R. 1424 enacting the Emergency Economic Stabilization Act of 2008. The Treasury will be given $250 billion immediately, and the President must certify additional funds as they are needed. The additional funds will be distributed as $100 billion, and then as the final $350 billion is given, Congress has the right to not approve the additional amounts.
Global credit markets came to a near stand still in September 2008, as several major financial institutions, such as Lehman Brothers, Fannie Mae, Freddie Mac and American International Group, went under. In a few surprising moves, heavyweights Goldman Sachs and Morgan Stanley even changed their charter to become commercial banks, in an attempt to stabilize their capital situation. The bailout will attempt to increase the liquidity of the secondary mortgage markets by purchasing the illiquid MBS, and through that, reducing the potential losses that could be felt by the institutions who currently own them.
In October of 2008, revisions to the program were announced by Treasury Secretary Paulson and President Bush; allowing for the first $250 billion to be used to buy equity stakes in nine major U.S. banks, and many smaller banks. This program demands that companies involved lose some tax benefits, and in many cases incur limits on executive compensation.
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2012.
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Troubled Asset Relief Program — TARP redirects here. For other uses, see Tarp. This article is about the Treasury fund. For the legislative bill and subsequent law, see Public Law 110 343. For the legislative history and the events leading to the law, see Emergency Economic… … Wikipedia
Troubled Asset Relief Program — USA Established on October 3, 2008 under the Emergency Economic Stabilization Act of 2008, the Troubled Asset Relief Program (TARP) authorizes the Secretary of the Treasury Department to use up to $700 billion to purchase assets and equity from… … Law dictionary
Troubled Asset Relief Program — Das Troubled Asset Relief Program (TARP) ist ein Programm, in dem die Regierung der Vereinigten Staaten Anteile an Finanzinstituten aufkauft, um den Finanzsektor zu stabilisieren. Das entsprechende Gesetz dafür unterzeichnete US Präsident George… … Deutsch Wikipedia
Troubled Asset Relief Program — El Troubled Asset Relief Program comúnmente conocido como TARP, o PCR, es un programa del gobierno de Estados Unidos para comprar activos y acciones de instituciones financieras para fortalecer su sector financiero, y que fue firmado como ley por … Wikipedia Español
Oversight of the Troubled Asset Relief Program — The Emergency Economic Stabilization Act created the Troubled Assets Relief Program to administer up to $700 billion. Several oversight mechanisms are established by the bill, including the Congressional Oversight Panel, the Special Inspector… … Wikipedia
Troubled Asset — Assets for which banks have overpaid such as loans that are made to borrowers who cannot afford to pay these loans back. Troubled assets are often secured by collateral that is valued less than the value of the loan itself. These personal or… … Investment dictionary
TARP — USA Established on October 3, 2008 under the Emergency Economic Stabilization Act of 2008, the Troubled Asset Relief Program (TARP) authorizes the Secretary of the Treasury Department to use up to $700 billion to purchase assets and equity from… … Law dictionary
TARP Bonuses — A buzzword coined by the financial media during the financial crisis of 2008/09 to describe bonuses paid to employees and executives of banks and other financial firms that received Troubled Asset Relief Program (TARP) funds. TARP bonuses were… … Investment dictionary
Tarp (Begriffsklärung) — Tarp bezeichnet: Tarp, Gemeinde im Kreis Schleswig Flensburg in Schleswig Holstein Tarpaulin (kurz: Tarp), eine Art Plane TARP steht für: Troubled Asset Relief Program, ein 2008 aufgelegter, US amerikanischer Rettungsfonds für den Finanzsektor… … Deutsch Wikipedia
Public-Private Investment Program for Legacy Assets — On March 23, 2009, the United States Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the United States Treasury Department announced the Public Private Investment Program for Legacy Assets. The program is designed to… … Wikipedia
