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 ?
Germany and France are pressing for the use of the European Financial Stability Mechanism to spread the cost of any future bail-outs.
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.
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.
Ironically, EU leaders are due at the summit to sign up to a new, permanent, 700 billion euro bail-out facility for eurozone countries in trouble.
Some economists warned that investors had caught on and were betting on future bail-outs by selling stock and buying bonds in struggling firms.
Markets fell on worries of further euro-zone bail-outs
PUBLIC borrowing has spiralled to a new record high as official figures warned bank bail-outs could add up to pounds 1.
And Taoiseach Brian Cowen told Fianna Fail's think-tank in Galway the bank bail-outs had put a "terrible burden" on taxpayers.
RBS, which is now 84% taxpayer-owned after a series of bail-outs, has attracted huge controversy about the level of planned bonuses at its investment arm.
PUBLIC borrowing has spiralled to a record high as official figures warned bank bail-outs could add up to pounds 1.
I'd form escaped jailbirds and homeless folk into a Band of Merry Men, then send them into the country homes (castles) owned by bankers (evil sheriffs) which are funded by our bail-outs (kings' ransoms).
His comments come as regulators across the world weigh up changes such as extra capital and liquidity restrictions for banks to stave off future taxpayer bail-outs - as well as potentially splitting out retail banking from riskier commercial banking activities.