The Troubled Asset Relief Program (TARP) was a $700 billion emergency fund established by the U.S. government in 2008 to stabilize the country's financial system during the subprime mortgage crisis. TARP provided capital to financial institutions to strengthen their balance sheets and increase lending. While TARP helped prevent further economic damage, it faced criticism for bailing out Wall Street firms and not providing enough aid to struggling homeowners or small businesses. Some TARP recipients, like large banks, repaid funds but grew significantly in size, treated TARP as a way to socialize losses from risky behavior.

1. TROUBLED ASSETS RELIEF PROGRAM

2. WHAT IS TARP? Emergency stabilization act , 3rd Oct 2008

3. To bail out the economy from the financial crisis

4. Gave the US treasury USD 700 Billion purchasing power

5. USD 250+USD100 Bn immediately released to treasury

6. Next USD 350 Bn - Congress approval needed

7. To buy Mortgage Backed Securities

8. To un seize the money market

9. To create liquiditySUBPRIME CRISIS

10. OBJECTIVE & OUTCOME Purchase assets and equity from financial institutions to strengthen its financial sector

11. To address the instability caused by subprime mortgage crisis.

12. Allows the Treasury to purchase illiquid assets from banks and other financial institutions

13. To purchase CDS, which were sold in a booming market until 2007

14. Finance main street- Making Home affordable Program- Help families stay in their homes =TARP was eventually getting Wall Street back on its feet; it is not meeting its goal of getting Main Street back on its feet Result: 'Too-big-to-fail' banks grow even biggerTARP RECIPIENTS

15. TARP FUNDS TARP funds were issued through:Purchase of preferred stock in banks which is redeemable

16. Purchase of equity capital

17. Issue of guaranteesTARP AND GOVERNMENT TARP became an act under president G.W. Bush

18. President BarackObama (Jan ‘09) said that he intended to "fundamentally change some of the practices" in the bailout program

19. He said, "Many of us have been disappointed with the absence of clarity, the failure to track how the money's been spent.“In Feb 2010 he planned Congress to transfer TARP funds that have been paid back from the Wall Street banks to a new program "to provide capital for community banks on Main Street which deal more closely with the small businesses“