In 2008 the economy was failing, and The Great Recession was beginning. To prevent a complete economic collapse the federal government intervened. 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 began a federal works program in an effort to reduce the rampant unemployment. The federal government began a federal works program in an effort to reduce the rampant unemployment. 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 approved a multibillion dollar deal to forgive the remaining debt on subprime mortgages