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 ?
Thus, he said the privatization of the BMC made business sense as it would relief government from spending on BMC bail outs and channel those funds towards other government initiatives.
HIGH STREET banks are on the cusp of a second credit crunch that threatens to spark another wave of taxpayer bail outs, a think-tank claimed today.
Anti-austerity protests erupted across Europe yesterday - Greek doctors and railway employees walked out, Spanish workers shut down trains and buses, and one man even blocked the Irish parliament with a cement truck to decry the country's enormous bank bail outs.