bank bailouts

A bank bailout occurs when the government provides financial support to a troubled bank facing significant losses or risk of collapse. This intervention aims to prevent a bank failure that could harm the broader economy, disrupt financial markets, and hurt customers and investors. Bailouts can involve direct cash infusions, guarantees, or other assistance to stabilize the bank's operations. The goal is to maintain confidence in the financial system, protect depositors, and avoid wider economic instability. While controversial, bailouts are seen as necessary in some situations to preserve economic stability.