bail out

(redirected from Bail-Outs)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
Figures from the Office for National Statistics (ONS) showed that borrowing - excluding the distorting effect of bank bail-outs - was PS9.
Borrowing costs in Spain, which is holding a general election this weekend, were its highest since 1997 and the same level that left Ireland and Portugal in need of bail-outs.
Germany and France are pressing for the use of the European Financial Stability Mechanism to spread the cost of any future bail-outs.
Greece and the Irish Republic have needed bail-outs, and Portugal is also now asking for help.
A bank levy has been proposed as a way of making banks pay for future bail-outs of financial institutions.
Mr Darling hoped the charge he announced in last month's mini-Budget would generate pounds 550million - and ease public anger over banks paying huge bonuses despite massive taxpayer bail-outs.
Remuneration is a thorny issue for banks after the Government bail-outs of last year and although Barclays did not receive state aid, its policies will be scrutinised for signs of a return to the old days.
The rich bankers and greedy speculators who got us into the mess are rewarded with huge bail-outs.
The aerospace industry did not need Government bail-outs but was worried money could be switched to other less successful areas, said Ian Godden, chief executive of the Society of British Aerospace Companies (SBAC).
Even those who have not had direct bail-outs now trade with an implicit guarantee from the Government.
THE full scale of the risk to the taxpayer from multibillion-pound bank nationalisations and bail-outs must be made public, MPs demanded today.
Economists said Chancellor George Osborne "had a long way to go" to repair the public finances as figures from the Office for National Statistics showed borrowing - excluding the distorting effect of bank bail-outs - was PS9.