Financial Stability Plan (FSP)

AAA

DEFINITION of 'Financial Stability Plan (FSP)'

A plan unveiled by the Obama administration in April, 2009, that was designed to stabilize the U.S. economy during the financial crisis of 2008-2009. The Financial Stability Plan (FSP) promised to take measures to solidify the American banking system, securities markets, mortgage and consumer credit markets. This somewhat controversial plan came as a response to the 2008 fallout in the mortgage and financial markets.

INVESTOPEDIA EXPLAINS 'Financial Stability Plan (FSP)'

The Financial Stability Plan (FSP) is estimated to cost the American taxpayer about $1 trillion. The FSP promised to create a new "public-private" governmental fund to absorb toxic assets and leverage private capital to stimulate the financial markets. It also aimed to further standardize the banking system and provide capital to unstable lending institutions. A consumer-business lending initiative was also included to restore consumer credit for stable borrowers.

RELATED TERMS
  1. Subprime Meltdown

    The sharp increase in high-risk mortgages that went into default ...
  2. Financial Stability Oversight Council

    A committee led by the U.S. Treasury Secretary that is charged ...
  3. Capital Injection

    An investment of capital generally in the form of cash or equity ...
  4. Tim Geithner

    The 75th United States Secretary of the Treasury. Geithner was ...
  5. Emergency Economic Stabilization ...

    One of the bailout measures taken by Congress in 2008 to help ...
  6. Homeowner Affordability And Stability ...

    A program rolled out in 2009 in an attempt to stabilize the U.S. ...
Related Articles
  1. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  2. Fannie Mae, Freddie Mac And The Credit ...
    Insurance

    Fannie Mae, Freddie Mac And The Credit ...

  3. 4 Overlooked Homeownership Costs
    Home & Auto

    4 Overlooked Homeownership Costs

  4. Foreclosure Opens Doors For Real Estate ...
    Home & Auto

    Foreclosure Opens Doors For Real Estate ...

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. 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 ...
Trading Center