Troubled Asset Relief Program

Troubled Assets Relief ProgramTARPTARP funds700 billion dollar Treasury fundbailoutTARP (Troubled Asset Relief Program)Troubled Asset Relief Program (TARP)United States Emergency Economic Stabilization fund$700 billion bank bailout$700 billion dollar Treasury fund
The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by a Democratic Party controlled Congress and signed into law by Republican Party President George W. Bush on October 3, 2008.wikipedia
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Emergency Economic Stabilization Act of 2008

Emergency Economic Stabilization ActWall Street bailoutPaulson financial rescue plan
The Emergency Economic Stabilization Act of 2008 created the TARP program. The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.
The law created the Troubled Asset Relief Program to purchase distressed assets from financial institutions.

Public Law 110-343

Energy Improvement and Extension Act of 2008HR1424H.R. 1424
The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.
The Act created a $700 billion Troubled Asset Relief Program under the Emergency Economic Stabilization Act of 2008 (division A), and also enacted the Energy Improvement and Extension Act of 2008 (division B), Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (division C), which also included the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, and the Heartland Disaster Tax Relief Act of 2008.

Timothy Geithner

Tim GeithnerTimothy F. GeithnerGeithner
On February 10, the newly confirmed Secretary of the Treasury Timothy Geithner outlined his plan to use the remaining $300 billion or so in TARP funds.
At the New York Fed, Geithner helped manage crises involving Bear Stearns, Lehman Brothers, and the American International Group; as Treasury Secretary, he oversaw allocation of $350 billion under the Troubled Asset Relief Program, enacted during the previous administration in response to the subprime mortgage crisis.

Assistant Secretary of the Treasury for Financial Stability

Office of Financial StabilityAssistant Secretary for Financial StabilityFinancial Stability
The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.
The position was created in 2008 by the Emergency Economic Stabilization Act of 2008, the act that created the Office of Financial Stability to administer the Troubled Asset Relief Program.

Neel Kashkari

KashkariKashkari, NeelNeil Kashkari
According to a speech made by Neel Kashkari, the fund would be split into the following administrative units:
As interim Assistant Secretary of the Treasury for Financial Stability from October 2008 to May 2009, he oversaw the Troubled Asset Relief Program (TARP) that was a major component of the U.S. government's response to the financial crisis of 2007–08.

Dodd–Frank Wall Street Reform and Consumer Protection Act

Dodd-Frank Wall Street Reform and Consumer Protection ActDodd-FrankDodd-Frank Act
The Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, reduced the amount authorized to $475 billion.
Title XIII, or the "Pay It Back Act", amends the Emergency Economic Stabilization Act of 2008 to limit the Troubled Asset Relief Program, by reducing the funds available by $225 billion (from $700 billion to $475 billion) and further mandating that unused funds cannot be used for any new programs.

Public–Private Investment Program for Legacy Assets

Public-Private Investment ProgramP-PIPPPIP
Geithner announced on March 23, 2009 a Public-Private Investment Program (P-PIP) to buy toxic assets from banks' balance sheets.
This program is one of the initiatives coming out of the implementation of the Troubled Asset Relief Program (TARP) as implemented by the U.S. Treasury under Secretary Timothy Geithner.

2008 United Kingdom bank rescue package

bank rescue packageUnited Kingdom bank rescue packageseries of bank bailouts
On October 8, the British announced their bank rescue package consisting of funding, debt guarantees and infusing capital into banks via preferred stock.
The British rescue plan differed from the initial United States' $700bn bailout under the Emergency Economic Stabilization Act of 2008, which was announced on 3 October and entitled the Troubled Asset Relief Program (TARP).

Term Asset-Backed Securities Loan Facility

The funds would come in many instances in equal parts from the U.S. Treasury's TARP monies, private investors, and from loans from the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF).
The U.S. Treasury's Troubled Assets Relief Program (TARP) of the Emergency Economic Stabilization Act of 2008 would finance the first $20 billion of asset purchases by buying debt in the SPV.

Subprime mortgage crisis

2007 subprime mortgage financial crisissubprime crisissub-prime mortgage crisis
It was a component of the government's measures in 2008 to address the subprime mortgage crisis.
The Emergency Economic Stabilization Act, also called the Troubled Asset Relief Program (TARP), was signed into law on October 3, 2008.

Henry Paulson

Hank PaulsonHenry M. PaulsonHenry M. Paulson, Jr.
On October 14, 2008, Secretary of the Treasury Henry Paulson and President Bush separately announced revisions to the TARP program.
With the passage of H.R. 1424, Paulson became the manager of the United States Emergency Economic Stabilization fund.

Too big to fail

too-big-to-failtoo big to let failToo Large to Fail
The New York Times stated: "The criteria being used to choose who gets money appears to be setting the stage for consolidation in the industry by favoring those most likely to survive" because the criteria appears to favor the financially best off banks and banks too big to let fail.
In addition, the government provided bailout funds via the Troubled Asset Relief Program in 2008.

Making Home Affordable

Home Affordable Modification ProgramHAMPHome Affordable Modification Program (HAMP)
The report predicted a total net cash outflow of $37.7 billion (excluding non-TARP AIG shares), based on the assumption the TARP housing programs' (Hardest Hit Fund, Making Home Affordable and FHA refinancing) funds are fully taken up.
The Making Home Affordable program of the United States Treasury was launched in 2009 as part of the Troubled Asset Relief Program.

Toxic asset

toxic assetstoxictoxic debt
Geithner announced on March 23, 2009 a Public-Private Investment Program (P-PIP) to buy toxic assets from banks' balance sheets. The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by a Democratic Party controlled Congress and signed into law by Republican Party President George W. Bush on October 3, 2008.
The funds will come in many instances in equal parts from the U.S. Treasury's Troubled Asset Relief Program (TARP) monies, private investors, and from loans from the Federal Reserve's Term Asset Lending Facility (TALF).

Chris Dodd

Christopher DoddChristopher J. DoddDodd
The measure was proposed by Christopher Dodd of Connecticut as an amendment to the $900 billion economic stimulus act then waiting to be passed.
The pay restrictions included prohibition of bonuses in excess of one-third of total salary for any company receiving any money from the plan and was retroactive to companies that received funds under Troubled Assets Relief Program.

Goldman Sachs

Goldman Sachs InternationalGoldman, Sachs & Co.Goldman Sachs Group
The banks agreeing to receive preferred stock investments from the Treasury include Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. (which had just agreed to purchase Merrill Lynch), Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon and State Street Corp.
As a result of its involvement in securitization during the subprime mortgage crisis, Goldman Sachs suffered during the financial crisis of 2007–2008, and received a $10 billion investment from the United States Department of the Treasury as part of the Troubled Asset Relief Program, a financial bailout created by the Emergency Economic Stabilization Act of 2008.

National City acquisition by PNC

acquisitionBoughtpurchase
The deal received much controversy due to PNC using TARP funds to buy National City only hours after accepting the funds while National City itself was denied funds, as well as civic pride for the city of Cleveland, Ohio, where National City was based.

American International Group

AIGSunAmericaAmerican General
Newly installed President Barack Obama, who had voted for TARP as a Senator responded to the planned payments by saying "[I]t's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?"

General Motors

GMGeneral Motors CorporationGeneral Motors Company
Through the Troubled Asset Relief Program the US Treasury invested $49.5 billion in General Motors and recovered $39 billion when it sold its shares on December 9, 2013 resulting in a loss of $10.3 billion.

Chrysler

Chrysler CorporationChrysler Group LLCChrysler LLC
The company remained in business through a combination of negotiations with creditors, filing for Chapter 11 bankruptcy reorganization on April 30, 2009, and participating in a bailout from the U.S. government through the Troubled Asset Relief Program.

Hardest Hit Fund

Hardest Hit Funds
The report predicted a total net cash outflow of $37.7 billion (excluding non-TARP AIG shares), based on the assumption the TARP housing programs' (Hardest Hit Fund, Making Home Affordable and FHA refinancing) funds are fully taken up.
HHF is part of the Troubled Asset Relief Program.

Popular, Inc.

Banco PopularBanco Popular de Puerto RicoPopular
The 371 banks that still owed money include Regions ($3.5 billion), Zions Bancorporation ($1.4 billion), Synovus Financial Corp. ($967.9 million), Popular, Inc. ($935 million), First BanCorp of San Juan, Puerto Rico ($400 million) and M&T Bank Corp. ($381.5 million).
As of January, 2012, Popular, Inc. still owed $935 million to the US government Troubled Asset Relief Program.

First BanCorp

FirstBank
The 371 banks that still owed money include Regions ($3.5 billion), Zions Bancorporation ($1.4 billion), Synovus Financial Corp. ($967.9 million), Popular, Inc. ($935 million), First BanCorp of San Juan, Puerto Rico ($400 million) and M&T Bank Corp. ($381.5 million).
As of May, 2016, First owed $124.97 million to the US government Troubled Asset Relief Program.

Citigroup

CitiCiticorpCitigroup Inc.
The banks agreeing to receive preferred stock investments from the Treasury include Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. (which had just agreed to purchase Merrill Lynch), Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon and State Street Corp.
By November 2008, Citigroup was insolvent, despite its receipt of $25 billion in taxpayer-funded federal Troubled Asset Relief Program funds.

American Express

American Express CompanyAmerican Express BankAmex
On November 10, 2008, during the financial crisis of 2007–2008, the company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Asset Relief Program.