Bail-Out

A Bail-Out is the provision of financial assistance, typically by a government or central bank, to a failing company or economy to prevent its collapse, a measure primarily justified in the regulatory context by the need to avert systemic risk and maintain financial stability. This controversial intervention, often associated with "Too Big to Fail" institutions, involves injecting public capital or guaranteeing liabilities to protect the broader financial system from contagion and catastrophic failure.