“Too big to fail” concept

The "too big to fail" concept refers to financial institutions or companies that are so large and interconnected that their collapse could cause significant disruption to the economy. Because of this potential impact, governments often intervene to prevent their failure, typically through bailouts or other support measures. The idea is that allowing these institutions to go bankrupt could lead to job losses, economic instability, and loss of public trust in the financial system. Consequently, they are seen as needing to be preserved to maintain overall economic health.