In the fall of 2010 I will be attending the Wharton School of Business at the University of Pennsylvania. I do not know exactly what aspect of business I will end up majoring in but I do know that whatever major I choose, I will become well-versed in the finance field. The Troubled Asset Relief Program that has been created has deeply affected the finance sector of the economy and I will continue to see its throughout my career.

 The Troubled Asset Relief Program (T.A.R.P.) is a program created by the United States government n 2008 to address the issue of the subprime mortgage crisis. The purpose of T.A.R.P. is to purchase assets and equities from financial institutions to strengthen the financial sector. As the financial sector becomes more stabilized it will open up more opportunities and jobs for business graduates like myself who are looking to make an impact in corporate America. With an unstable economy, companies are more hesitant on hiring young people because they do not want to risk their company on people who do not have as much experience as older executives. With a stable economy they will be more willing to employ people like myself. This program has also cost the country a massive amount of money. But so far only $89 billion out of a budgeted $356 billion have been used. With this in mind, the government first thought that they would have to strengthen companies such as General Motors, AIG, and Citigroup over a several year span. But these companies are slowly beginning to pay back the money that they were lent, which is making the economy and budget more stable. Since two of these companies are financial institutions, their success is adding stability and confidence to the financial sector which will boost the United States economy.

 As the United States Department of the Treasury bought asets and equities for different institutions, it was thought to add financial market stability. This shows that the United States is very adamant about keeping its financial institutions afloat because it knows how heavily these companies wigh on the survival of the country’s economy. With financial market stability, financial liquidity is improved, balance sheets of various companies are stabilized, and an increase in losses is avoided. The concept of T. A.R.P. assumes that once the trading of assets resumes then their prices will be steady and ultimately increase their value, resulting in gains to both participating banks and the Treasury. They are trying to preserve the longevity of these financial institutions, which is good not only for people who are looking to work in the financial industry but is also beneficial to the entire country.

 If a financial institution decides to sell assets to T.A.R.P. then they have to issue warrants to the Treasury. This is designed to protect tax payers and if these financial institutions are successful, then the government will also profit from it. It is also encouraged that banks resume lending so that they will feel more comfortable with their cash flow and loosen their credit. This will make it easier for people to receive loans and will boost confidence in the United States economy, and bring order to financial markets.

 As a potential finance major at the University of Pennsylvania, the Troubled Asset Relief Program ill affect me greatly. The state of the finance sector depends on the success of this program implemented by the United States’ government. With this in mind, I have to be very concerned on how the program is being received in various communities, and see what actions are being implemented into the program.

 The T.A.R.P. or Troubled Asset Relief Program has affected my chosen field in many ways. I plan to pursue business administration as one of my majors heading into college. In order to best understand how to work in my chosen filed, I have to know the many government programs created to get companies back on their feet in the midst of the recent recession.

 T.A.R.P. was created primarily to help get Ford bak on its feet after it made countless mistakes in its production of cars. By not keeping up with the social and economical “go green” option, they lost many customers and had to turn to the government for assistance. This teaches me that in order to stay successful as a businessman, you must follow the swaying and ever changing demands of the public. Doing so allows me to keep control of my stocks instead of handing them over to the government for assistance and additional regulation.

 T.A.R.P. has helped many huge businesses get back on their feet. Some of them are Citigroup, Bank of America, AIG, JPMorgan Chase, General Motors, and Chrysler. This program has helped the businesses that were hit the hardest by the recession stabilize and prosper once more. It’s primary purpose however, was to not give a no strings attached loan to businesses, but rather to provide liquidity in response to the financial crisis that occurred from 2008-2009.

 The T.A.R.P. also assists small business by allowing them to maintain good credit, which in turn helps them when it comes time to borrowing loans. By looking at the situation of someone with bad credit and a small business, I learned that maintaining good credit at all times is the key to doing almost anything you want to do. The better your credit score is, the easier it is for you to access the money you need to finance your small business, law firm, birthday party and many other events.

 Many controversies concerning the T.A.R.P. have been discussed. The program has been called a direct “no strings attached” handout to businesses, which in turn would use them simply to purchase other businesses or give raises to its top employees. Despite all the controversy, I believe the T.A.R.P. is one solution to the many problems that the financial crisis of 2008-2009 created, and that it has helped to stabilize big businesses, small businesses, and homeowners and restored financial security for those who were in financial hardship.