Legislation designed to assist large financial institutions to prevent failure and to signal to worldwide financial markets that the United States government would stand behind major American banks and other important financial entities to prevent disruptive collapses.
The Troubled Assets Relief Program (TARP) was a U.S. Treasury program established under the Emergency Economic Stabilization Act (EESA) of 2008 to stabilize the financial system during the financial crisis by purchasing troubled assets and providing capital to financial institutions.
