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Pavel
2 months ago
9

Why did many Americans criticize the Troubled Asset Relief Program?

History
2 answers:
LenKa [1.8K]2 months ago
7 0

Many Americans criticized the Troubled Asset Relief Program (TARP) because it provided aid to the institutions that had triggered the financial crisis.

Congress authorized TARP in October 2008, initially allocating $700 billion for government intervention; that figure was later reduced to $475 billion in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The US Treasury Department "established several programs under TARP to help stabilize the U.S. financial system, restart economic growth, and prevent avoidable foreclosures" (US Department of the Treasury information). The largest portions of the funds went to the banking sector ($250 billion) and to American International Group (AIG) ($70 billion). Those financial institutions were major contributors to the market collapse, yet because they were deemed "too big to fail," the government provided bailouts. The US auto industry also received bailout assistance ($82 billion). About $46 billion was designated for homeowner programs to prevent foreclosures, but that aid was viewed as small relative to the vast sums given to the firms and industries that helped cause the housing and economic crisis.

BigorU [1.6K]2 months ago
3 0
The chief objection many Americans had to TARP was that it seemed unjust to use taxpayer funds to rescue the banks whose risky actions helped trigger the financial crisis. 
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