On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act into law during the global financial crisis. The act created the Troubled Asset Relief Program, often called TARP. It allowed the U.S. Treasury to purchase or insure troubled financial assets from banks and other institutions. Supporters argued that these steps were needed to prevent a collapse of the banking system. Critics were concerned about the cost, fairness, and long-term effects of such a large federal intervention. The law became one of the central U.S. responses to the financial crisis of 2007–2009.
