Troubled Asset Relief Program

The Troubled Asset Relief Program was primarily used to buy non-performing mortgage-backed securities from financial institutions. The program reduced the risk of loss that might otherwise have been experienced by the banks holding those assets. The uses to which the funding was eventually put included bank stabilization, support of the automobile manufacturing industry, and foreclosure prevention programs. The program was originally given $700 billion of funding, which was later reduced to $475 billion. The intent behind the program was to restore the liquidity of the financial system of the United States in response to the 2008 financial crisis.