文章基本信息

标题：American Troubled Assets Relief Program – One of the Most Important Measures Against Actual Crisis
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作者：Dobre Elena
期刊名称：Ovidius University Annals: Economic Sciences Series
电子版ISSN：2393-3127
出版年度：2010
卷号：10
期号：2
语种：English
出版社：Ovidius University Press
摘要：Troubled Asset Relief Program (TARP) is already known as the greatest governmental measure in the world. This is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector. It is the largest component of the government's measures in 2008 to address the sub- prime mortgage crisis. "Troubled assets" are defined as residential or commercial mortgages and any securities,obligations,or other instruments that are based on or related to such mortgages,that in each case was originated or issued on or before March 14,2008,and any other financial instrument. To participate in the bailout program,companies will lose certain tax benefits and,in some cases,must limit executive pay. In short,this allows the Treasury to purchase illiquid,difficult-to-value assets from banks and other financial institutions. The targeted assets can be collateralized debt obligations,which were sold in a booming market until 2007 when they were hit by widespread foreclosures on the underlying loans. TARP is intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms,thus allowing participating institutions to stabilize their balance sheets and avoid further losses. The effects of the TARP have been widely debated in large part because the purpose of the fund is not easily understood. Hence,we find some controversies linked to banks that received bailout money had paid their top executives nearly $1.6 billion in salaries,bonuses,and other benefits in 2007. The purpose of this paper is to present administrative structure,eligible assets and valuation criteria,participants and controversies arise about this measure against crisis. The aim of research is to spread the specialized glossary and to understand the hole problematic by progress through sharing method. Conclusions raised are linked to sharing this experience to other specialists,other governments and other countries.
关键词：crisis;collateralized debt obligations;Troubled Asset Relief Program;Mortgage-backed securities purchase program;Equity purchase program.