Bank Bailout

A bank bailout occurs when a government intervenes to support a struggling bank to prevent its collapse, which could negatively impact the economy. This support often involves providing financial assistance, such as loans or capital, to stabilize the bank's operations. The goal is to maintain public confidence in the banking system, protect depositors, and avoid broader economic turmoil that could result from a bank failure. Bailouts can involve taxpayers' money, which sometimes raises debates about accountability and the long-term consequences of such interventions.