bailout

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Bailout

A capital infusion offered to a business with a national or multi-national footprint that is in danger of bankruptcy, insolvency, or total liquidation.  Financial aid can be provided in the form of debt or equity offerings, cash contributions, or some form of loan or line of credit, and is often accompanied by greater government oversight and regulation.  The failure of a business that employs thousands or plays an influential role in the economy potentially can send shock waves throughout the entire economy, including other industries. The credit crisis that began in 2007 created numerous failures around the world, which resulted in a large number of government-sponsored bailouts in almost every industry across the globe. See: Conservator, Conservatorship.

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.

bailout

The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout.
References in periodicals archive ?
Shows how each bailout throughout modern history has impacted what happened in the future
Meanwhile, next month Greece is obliged by its bailout terms to come up with another e1/411 billion in spending cuts and its creditors wasted no time yesterday in reminding that "the agreed programmes must be adhered to".
Investors had been anticipating a bailout since Friday and Saturday last week, when the finance ministers of the Group of 7 met in Canada.
Other interesting data can be seen in the fake bailout checks.
FreedomWorks also circulated a letter form Chairman Dick Armey to Congress opposing the bill and issued a key vote notice against the bailout.
Today, from 10am to 4pm at Union Station, Bailout Bill, Founder of BailoutBooth.
The major beneficiaries to emerge from the bailout are the European megabanks that hold about 75 percent of the country's foreign debt.
com, with the opportunity to give away cash bailouts to the general public.
From massive military interventionism to bailouts of bankrupt Third World despots, Washington's budgetary priorities suggest that our leaders have been more concerned about the citizenry and governments of foreign nations than about their own:
The administration must not, however, perpetuate the Clinton administration's disastrous policy of insuring developing countries and international investors against their own imprudent actions--a policy that resulted in eight major financial bailouts beginning with Mexico in 1995.
WASHINGTON -- As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.
While 48% do favor some sort of bailout, the survey illustrated the lack of consumer consensus on bailouts and in particular federal support for these leading U.