Summary Of Final Legislation - Emergency Economic Stabilization Act Of 2008 (EESA) / Troubled Asset Relief Program (TARP)

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Summary Of Final Legislation - Emergency Economic Stabilization Act Of 2008 (EESA) / Troubled Asset Relief Program (TARP)

On October 3, 2008, the Emergency Economic Stabilization Act of

2008 (the Act) was enacted, giving the Secretary of the Treasury

(Secretary) the authority, among other things, to implement the

Troubled Asset Relief Program (TARP). The TARP allows the Secretary

to purchase and insure troubled assets from a range of financial

institutions, including, but not limited to, insurance companies

and securities brokers and dealers, in order to restore liquidity

and stability to the U.S. financial system. The Secretary has

published the first requests for proposals for financial agents to

perform services to administer the TARP, and the first asset

purchases are expected to occur soon. More recently, the Secretary

has indicated that Treasury will use the Act to invest in financial

institutions to bolster their capital levels in order to boost

confidence in the...

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