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 ?
But Downing Street insisted any funding to stabilise Greece during the process of leaving the eurozone should be for the eurozone countries alone - just like bail-outs for those inside the single currency bloc.
The longer the bail-outs go on, the more debt moves from the books of wobbly European banks onto the balance sheets of public institutions.
The series of bail-outs began over the weekend when Fortis, the Dutch-Belgian banking giant, was partially nationalised.
Eurozone ministers agreed on Sunday to put together a second bail-out package worth 120billion euros to fund Greece into 2014.
In contrast, bail-outs for other sectors could be a gamble for taxpayers' money.
The euro dropped sharply on international money markets and if financial bail-outs follow the one given to Ireland, it would cost British taxpayers billions.
EU Commission President Jose Manuel Barroso said eastern European countries were already getting billions in emergency rescue funds from the EU, the World Bank and other financial institutions and did not need a sweeping new bail-out plan.
But now Portugal looks set to demand a massive bail-out after the collapse of the Lisbon government's austerity plans and the resignation of the prime minister Jose Socrates on Wednesday.
They pretended they were drawing a line in the sand with Lehman Brothers but now two days later they're doing another bail-out," said Nouriel Roubini, a professor at New York University's Stern School of Business.
The downgrade hammered shares in RBS, rescued by pounds 20billion in bail-out funds from the taxpayer in 2008, and Lloyds, saved by a pounds 17billion package the same year.
US President Barack Obama has told taxpayers that they will get their money back for saving General Motors, taking credit for an unpopular bail-out the White House sees as a clear symbol of success.
Summary: Angry shareholders have accused ministers of "legalised theft" over the Bradford and Bingley government bail-out.