Troubled Assets Relief Program (TARP)

SeekingAlpha  Jul 25  Comment 
ByProfit Fan: Always up for a turn-around story, this review of Pacific City Financial Corp. (OTCQB:PFCF) started with a search for a regional bank that was still holding TARP Preferred shares. We are now entering the time where the interest paid...
DailyFinance  Jul 22  Comment 
Momentum Continues With Loan Growth, New Products and Improved Efficiency; New Shareholders and Private Placement Fuel TARP ExitNARBERTH, PA--(Marketwired - July 22, 2014) - Royal Bancshares of Pennsylvania, Inc. ("Company") (NASDAQ: RBPAA),...
Benzinga  Jul 2  Comment 
Popular, Inc. (“Popular”) (NASDAQ: BPOP) announced today that it has completed the repayment of TARP funds to the U.S. Treasury through the repurchase of $935 million of trust capital securities issued to the U.S. Treasury under the TARP...  Jul 2  Comment 
DailyFinance  Jul 2  Comment 
Annual Stampede Campaign Helps Families in NeedCALGARY, ALBERTA -- (Marketwired) -- 07/02/14 -- The Calgary Food Bank and Burnet, Duckworth & Palmer (BD&P) are ready to launch the 6th annual Put the Boots to Hunger, a Stampede food & fundraising...
Wall Street Journal  Jun 20  Comment 
Some of the banks that received TARP money aren't obligated to make good on dividend payments they have missed.
DailyFinance  Jun 18  Comment 
Popular, Inc. (“Popular”) (NASDAQ:BPOP) announced today that it has received regulatory approval to repay $935 million in TARP Capital Purchase Program funds to the U.S. Treasury. Popular intends to redeem its junior...
BusinessWeek  Apr 30  Comment 
The Troubled Asset Relief Program disbursed $423.4 billion, mostly to banks, auto makers, and securities dealers. Some $5 billion was stolen  Apr 30  Comment 
Little more than five years later, the rescue of Wall Street and Main Street during the financial crisis has cost taxpayers about $40 billion, according to a watchdog agency report released Wednesday.
SeekingAlpha  Apr 23  Comment 
By Chris Ciovacco: Learning From Nixon's Wage And Price Controls If you believe in the free enterprise system and its ability to efficiently allocate productive resources, the blurb below falls in the "I can't believe they did that"...



Read more about the 2008 Financial Crisis.

The Troubled Assets Relief Program (TARP) is a facility created by the US Government to buy distressed assets from financial institutions in response to the 2008 Financial Crisis. The program was created through the Emergency Economic Stabilization Act of 2008 and is managed by the Office of Financial Stability at the US Treasury. The TARP was initially designed to buy distressed mortgage-backed securities from financial institutions but evolved to encompass corporate debt and equity injections into banks.

The Emergency Economic Stabilization Act of 2008, enacted on October 3, 2008, allows the Treasury to spend up to $700 billion on this program. The Treasury is allowed to draw up to $250 billion immediately after the enactment, then requires the President to certify an additional $100 billion; another $350 billion are subject to further Congressional approval.[1]

The original idea behind TARP was to create liquidity in the credit markets by buying (and freeing up) assets tied to mortgages from banks -- hence allowing them to continue lending. However, on October 13, 2008, the Treasury announced that it was going to take equity stakes in nine major banks and encouraged smaller banks to apply for equity injections.

Institutions which participate in this program will be subject to more oversight from the government and would have to limit executive compensation.

On November 12, 2008, Treasury Secretary Henry Paulson announced that no TARP funds would be used to purchase troubled assets.


  1. Economic rescue swiftly signed into law. AFP (2008-10-03).
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