Troubled Asset Relief Program (TARP)

A program set up by the U.S. Secretary of the Treasury, pursuant to the Emergency Economic Stabilization Act of 2008, to purchase up to $700 billion in “troubled assets” from financial institutions. “Troubled assets” include (1) residential or commercial mortgages and related instruments originated or issued on or before March 14, 2008, the purchase of which promotes financial market stability, and (2) other financial instruments, the purchase of which is deemed necessary to promote financial stability.