Troubled Asset Relief Program

Troubled Asset Relief Program Leroy Shepherd Jr. Webster University Basic Finance for Managers BUSN 5200 Instructor, David Fish Ed.D March 21, 2012 Troubled Asset Relief Program The Troubled Asset Relief Program as part of the Emergency Economic Stabilization Act was an initiative signed into law on October 3, 2008 by then President George W. Bush. TARP authorized the U. S Treasury to purchase up to $700 billion in assets and securities from financial institutions in a response

their assets and to further save its financial sector as much as banks never wanted to go bankrupt as banks’ do have businesses based on and trust and solvency record. Thus, the United States established the Troubled Asset Relief Program or TARP with a purpose of insuring all the troubled assets and reinforcing the banks with more capitals for them to further able to operate and withstand losses where in fact, $700 billion was allotted in this program. With the help of Troubled Asset Relief Program

When the Troubled Asset Relief Program was first put into place, $700 billion dollars was authorized to be used for this program. This meant that the possible cost of this policy could possibly end up being $700 billion. That money would go towards purchasing assets of companies that were unstable. After the program was put into place, the beneficiaries were major companies such as Goldman Sachs, JPMorgan Chase, Morgan Stanley, Merrill Lynch, AIG, Citigroup, Bank of America, GM, and Chrysler.

it’s clear that the bailout was a solid success.”. The financial bailout, known as the Troubled Asset Relief Program, has left the banks still reliant on the government in the event of a future crisis (Leonhardt). In 2008, two large industries were on the brink of collapse. George W. Bush signed a bill to put money into the failing auto industry. Barack Obama signed the bill known as the Troubled Asset Relief Program to save major U.S. banks from a financial meltdown (Barofsky). The lessons that we can

to not only stop the bleeding and devastation but also to restore confidence in the financial system and reassure the public the economy wasn’t in a free fall. This was not a time to sit back and let the market self-adjust. Under the Troubled Asset Relief Program (TARP), the U.S. Treasury played a key role in stabilizing the financial system, the auto industry, and the housing markets during the 2008 financial crisis. Essentially, the U.S. Treasury guaranteed money market funds, provided capital

The article "Troubled Asset Relief Program" showcases the recent effects of the program and what precautions the Department of Treasury should take in response. The article was most likely written by an employee from the U.S. Government Accountability Office (GAO). Their reason for writing this article can be analyzed by their tone, word choice, and audience. With this in mind, the first thing to look at is who the author is. The author could either be Thomas J. McCool or the U.S. Government

financial losses. These companies are reducing salaries and cutting peoples’ jobs while executives are maintaining high compensations. Using tax payer’s money, the US Government is assisting these financially struggling companies through the Troubled Asset Relief Program (TARP). TARP was created to assist these companies to ultimately allow them to survive and prevent massive job loss. Tax payers are concerned about executives receiving a high and unjust compensation in comparison to other non-executives

component of the solution is addressing the banks’ “toxic assets” that were created by the mortgage banks lending on overvalued property and lending to consumers that could not afford the payments. Underwriters should have prevented more of this; however that was not the case. In the future, banks and lenders will need to be more effective in the approval process that qualifies home buyers. The banks will have the option to participate in this program or not. They will also have the chance to pick and choose

Bailout Ethics Americans are outraged. Billions of taxpayer dollars were committed last year to rescuing firms such as Citigroup and the American International Group (AIG). Earlier this year, several companies who received Troubled Asset Relief Program (TARP) assistance were awarding top executives with extravagant bonuses. According to the Wall Street Journal, the U.S. government lent $238 billion in TARP taxpayer funds to almost 700 banks; 44 of these banks have repaid a $71 billion (Johnston

Case Study for Romanelli v. Citibank Christine A. Adams Liberty University Online Case Study for Romanelli v. Citibank Case Details In Romanelli v. Citibank, Romanelli sued Citibank over claims of negligence following the embezzlement of money by Schor, Romanelli’s financial advisor. Romanelli contended that Citibank was liable for allowing Schor’s actions. Both the New York trial court and New York appellate court found in favor of Citibank, stating that Romanelli was liable for Schor’s