Recovery Act vs. TARP
The following statements are true:
The Recovery Act is not the Troubled Asset Relief Program (TARP), and is not connected to TARP.
The Recovery Board and Recovery.gov were created by the American Recovery and Reinvestment Act of 2009.
The chart below indicates the differences between the Recovery Act and TARP.
|THE AMERICAN RECOVERY AND
|TROUBLED ASSET RELIEF PROGRAM|
|Signed into law by President Obama on Feb. 17, 2009||Signed into law by President George Bush on Oct. 3, 2008|
|Congress allocated $787 Billion for the Recovery Act||Congress allocated up to $700 Billion for TARP|
|Enacted in response to Severe Economic Downturn||Enacted in response to Sub-prime Mortgage Crisis|
|Commonly Known as ARRA||Commonly Known as TARP|
|Public Understanding of Reason for Recovery Act: To Create jobs||Public’s Understanding of Reason of TARP: Bank bailout|
|Stated Purposes in the Recovery Act: Spur the economy and invest in long-term growth, and Foster unprecedented levels of accountability and transparency in government spending||Stated Purpose in TARP: Purchase toxic mortgage-related assets from financial institutions to provide stability to the banking system|
For more information on ARRA, read the Recovery Act.
For more information on TARP, visit www.financialstability.gov.