bail out

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Bail Out

To give money to a company so that it avoids bankruptcy and is able to continue operations. Generally speaking, the term often refers to a government bailing out a private corporation. A bailout may take the form of a direct transfer of capital, or it may occur indirectly through low or no interest loans and subsidies. For example, in September of 2008 the insurance conglomerate AIG found itself in dire straits. The Federal Reserve bailed it out by extending $85 billion (and eventually $182 billion) in credit to the company. Proponents of bailouts say that they keep an economy afloat when an industry thought too big to fail otherwise would collapse. Critics contend that bailouts are inefficient and that non-competitive companies ought to fail. See also: Cash for clunkers.

bail out

To sell a security, generally at a loss, in anticipation of a further price decline.
References in periodicals archive ?
The Spanish government, now struggling with its own economic crisis and likely to need a massive EU bail-out, urged Greek politicians to resolve their differences and stick to the austerity path to avoid further economic "contagion".
5 billion bail-out package drafted by the French government.
Figures released on Wednesday by the Office for National Stastics revealed public sector net borrowing, excluding financial interventions such as bank bail-outs, was Au15.
BERWICK MP Sir Alan Beith has urged David Cameron to press ahead with fundamental changes to banks to prevent any more taxpayer bail-outs.
IT could take more than 10 years for the Government to get its money back from bank bail-outs, it was claimed yesterday.
We haven't been involved in talks about potential Greek bail-outs.
The government has responded with deep spending cuts and costly bail-outs of the banking sector.
Writing in the Financial Times, chief executive Alessandro Profumo, said that the fund could provide help to European banks in the event of another crisis to turn themselves around without state bail-outs.
Who would have thought for one minute it would be dog breeding and stag hunting and not NAMA, bank bail-outs or cutbacks that could illicit such passion from our representatives?
CHANCELLOR Alistair Darling welcomed reports that the International Monetary Fund is calling for two new taxes on the banks to pay for future bail-outs.
The IMF is expected to recommend the tax to sit alongside a global levy on bank balance sheets as the grip tightens on the sector following the mammoth bail-outs seen during the meltdown.