When the Emergency Economic Stabilization Act (Act)1 was passed in October 2008, it required the U.S. Department of the Treasury (Treasury) to develop a program to “guarantee the timely payment of principal of, and interest on, troubled assets in amounts not to exceed 100 percent of such payments.” On December 31, 2008, Treasury announced the establishment of an Asset Guarantee Program (Program). Treasury’s objective for the Program is “to foster financial market stability and thereby to strengthen the economy and protect American jobs, savings, and retirement security.”2

For more information on the Act and the other financial crisis related government actions to date, please see our related publications available at Financial Crisis Legal Updates and News.

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