in 2008 How did the United States government attempt to correct the failure of financial institutions? Responses The Federal Reserve approved a multibillion dollar deal to bailout the failing institutions. The Federal Reserve approved a multibillion dollar deal to bailout the failing institutions. The federal government approved a multibillion dollar deal to forgive the remaining debt on subprime mortgages. The federal government approved a multibillion dollar deal to forgive the remaining debt on subprime mortgages. The Federal Reserve approved a multi billion dollar deal to keep small businesses in business. The Federal Reserve approved a multi billion dollar deal to keep small businesses in business. The federal government began a federal works program in an effort to reduce the rampant unemployment