bail out


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Related to bail out: bale out

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 ?
SEVERAL European banks are considering setting up a 20 billion euro private sector recovery fund that could bail out financial institutions, the head of UniCredit bank said.
Fears over the future of the eurozone are rife because Italy and Spain are too big to bail out and have the potential to sink the currency bloc.
Rather it was a monthly package to bail out our banks, to the tune of at least pounds 5 billion a month.