Troubled Asset Relief Program - TARP

TERM OF THE DAY - OCTOBER 14, 2011 Add Investopedia to Safe Sender List Find Investopedia on Troubled Asset Relief Program - TARP What Does it Mean? 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. Investopedia Says... 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... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - Top 7 Biggest Bank Failures Many people assumed these giants were too big to fall - they were wrong.  View the Slideshow » Special Feature - Economic Recovery: Get Ready Take advantage of this once-in-a-lifetime opportunity in the financial markets. Click here for more. Related Terms American Recovery And Reinvestment Act Ben Bernanke Build America Bonds - BABs Capital Injection Credit Crisis See More » Related Links Top 6 U.S. Government Financial Bailouts Liquidity And Toxicity: Will TARP Fix The Financial System? An In-Depth Look At The Credit Crisis See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.