Emergency Economic Stabilization Act of 2008

Uncommon card · No. 175809

The Emergency Economic Stabilization Act of 2008, also known as the "bank bailout of 2008" or the "Wall Street bailout", was a United States federal law enacted during the Great Recession, which created federal programs to "bail out" failing financial institutions and banks. The bill was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and was signed into law by President George W. Bush. It became law as part of Public Law 110-343 on October 3, 2008. It created the $700 billion Troubled Asset Relief Program (TARP) whose funds would purchase toxic assets from failing banks. The funds were mostly directed to inject capital into banks and other financial institutions as the Treasury continued to review the effectiveness of targeted asset-purchases. The 2008 financial crisis developed partly due to the subprime mortgage crisis, causing the failure or near-failure of major financial institutions like Lehman Brothers and American International Group. Seeking...

Read on Wikipedia · Image U.S. Government, Public domain