Definition
The Troubled Asset Relief Program (TARP) was a U.S. government program created during the 2008 financial crisis to stabilize the financial system by providing capital and support to financial institutions and markets.
Why It Matters
It illustrates how governments can intervene during crises to prevent broader economic collapse, while raising debates about moral hazard and fairness.
Example
The government injected capital into major financial institutions to strengthen balance sheets during the crisis.