The Troubled Asset Relief Program (TARP) was a financial policy implemented in the United States in 2008 in response to the global financial crisis. It was a government program designed to purchase and manage toxic assets (e.g. mortgage-backed securities) from struggling financial institutions in an effort to stabilize the financial system and prevent a deeper economic recession. Additionally, TARP provided assistance to homeowners facing foreclosure and implemented measures to prevent excessive executive compensation in the banking sector.
