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Summary and Analysis of the Troubled Asset Relief Program

By By Erik D. Klingenberg
November 20, 2008

The United States is in the midst of the worst financial crisis since the Great Depression. The credit markets are barely functioning, numerous financial institutions are failing, and real estate values are plummeting. What started as a breakdown of the credit markets has spread throughout the entire economy. In an attempt to strike at the heart of the current credit crisis, the Emergency Economic Stabilization Act of 2008 (the “Act”) establishing the Troubled Asset Relief Program (the “Program”) was enacted on Oct. 3, 2008 in an effort to “restore liquidity and stability to the financial system of the United States.” (Act at '2(1)). This article cuts to the substance of the Program, examining the provisions dealing with the actual purchase, management, and sale of troubled assets, with an eye toward the financial community.

Program Overview

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