RS22963
Financial Market Intervention
January 29, 2009

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Summary:

Financial markets continue to experience significant disturbance and the banking sector remains fragile. Efforts to restore confidence have been met with mixed success thus far. This report provides answers to some frequently asked questions concerning ongoing financial disruptions and the Troubled Asset Relief Program (TARP), enacted by Congress in the Emergency Economic Stabilization Act of 2008 (EESA, Division A of H.R. 1424/P.L. 110-343). It also summarizes legislation in the 111th Congress such as H.R. 384, the TARP Reform and Accountability Act of 2009 and H.R. 703, ?Promoting Bank Liquidity and Lending Through Deposit Insurance, Hope for Homeowners, and other Enhancements.? The report also describes the option of a good-bank, bad-bank split.