Emergency Economic Stabilization Act (EESA) of 2008

DEFINITION of 'Emergency Economic Stabilization Act (EESA) of 2008'

One of the bailout measures taken by Congress in 2008 to help repair the damage from the subprime mortgage crisis. The act gives the Treasury Secretary the authority to buy up to $700 billion of troubled assets and restore liquidity in financial markets. The Emergency Economic Stabilization Act (EESA) was originally created and proposed by Henry Paulson.

BREAKING DOWN 'Emergency Economic Stabilization Act (EESA) of 2008'

The original form of the EESA was rejected by the House of Representatives in September of 2008 and was therefore revised. A revised version was passed the following month. Proponents of the plan felt that it was vital to minimize the damage done to the economy by the mortgage meltdown, while detractors felt that the cost of the plan was way too high.

RELATED TERMS
  1. Henry Paulson

    Henry Paulson served as the 74th U.S. Secretary of the Treasury. ...
  2. ABX index

    A financial benchmark that measures the overall value of mortgages ...
  3. Treasury Secretary

    The Secretary of the Treasury is a member of the Presidential ...
  4. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  5. Mortgage Company

    A company engaged in the business of originating and/or funding ...
  6. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
Related Articles
  1. Economics

    What is a Subprime Mortgage?

    Subprime mortgages are offered to borrowers with low credit ratings, usually 600 or below.
  2. Economics

    The 2007-08 Financial Crisis In Review

    Subprime lenders began filing for bankruptcy in 2007 -- more than 25 during February and March, alone.
  3. Options & Futures

    Subprime Is Often Subpar

    Proceed with caution when considering these short-term, high-interest mortgages.
  4. Investing News

    John Paulson's Success Story: Net Worth, Education & Top Quotes

    Learn about the early life and distinguished career of John Paulson, the hedge fund manager who made billions betting on the subprime mortgage crisis.
  5. Insurance

    Behind The Scenes Of Your Mortgage

    Four major players slice and dice your mortgage in the secondary market.
  6. Home & Auto

    5 Risky Mortgages To Avoid

    There are plenty of ways to end up with a bad mortgage. The risks of these five should make every homebuyer think twice before signing.
  7. Credit & Loans

    Don't Get Overcharged for Your Mortgage

    Don't pay more for a mortgage than necessary. Here’s a quick look at the different categories and how to be sure you're getting the best deal.
  8. Credit & Loans

    Credit Crisis: Government Response

    By Brian PerryThe credit crisis has represented the gravest threat to the global financial system since the 1930s. Fortunately, policymakers have been proactive in their efforts to mitigate the ...
  9. Economics

    How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.
  10. Home & Auto

    Shopping for a mortgage in 2016? Use this tool first.

    As home-buying technology has progressed, the process of finding the best mortgages rates for 2016 can all be done online.
RELATED FAQS
  1. What is a subprime mortgage?

    A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result ... Read Answer >>
  2. Are subprime mortgages still available for homeowners?

    Buying homes became increasingly difficult after the housing bubble burst. Since then, subprime mortgages have been making ... Read Answer >>
  3. What are the similarities and differences between the savings and loan (S&L) crisis ...

    Learn about some of the similarities and differences between the savings and loan crisis and the subprime mortgage crisis ... Read Answer >>
  4. How much risk is associated with subprime mortgages?

    Discover the risks associated with subprime mortgages. Find out whether taking out a subprime mortgage on your home is really ... Read Answer >>
  5. What role did securitization play in the U.S. subprime mortgage crisis?

    Learn how the securitization of sub-prime mortgages into asset-backed securities fueled the real estate market crash in 2 ... Read Answer >>
  6. What are the major laws (acts) regulating financial institutions that were created ...

    Read about the major federal responses to the financial crisis of 2008, such as the Dodd-Frank Wall Street Reform Act and ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center