bailout

noun

bail·out | \ˈbāl-ˌau̇t

Definition of bailout

(Entry 1 of 2)

: a rescue from financial distress

bail out

verb

Definition of bail out (Entry 2 of 2)

intransitive verb

1 : to parachute from an aircraft

2 : to abandon a harmful or difficult situation also : leave, depart

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Examples of bailout in a Sentence

Noun

government bailouts of large corporations

Verb

if the meeting seems like it will never end, find an excuse to bail out the government bailed out the savings and loan industry

Recent Examples on the Web: Noun

Amid the chaos after Lehman Bros.’ collapse, the big banks got hundreds of billions of dollars in bailouts. — Jim Puzzanghera, The Seattle Times, "A decade after the financial crisis, many Americans are still struggling to recover," 10 Sep. 2018 When the lawsuit was filed, the Detroit school district was emerging from insolvency after Mr. Snyder signed off on a $617 million bailout and restructuring plan. — New York Times, "‘Access to Literacy’ Is Not a Constitutional Right, Judge in Detroit Rules," 4 July 2018 Federal regulators took over the two companies during the 2008 financial crisis, eventually injecting them with $187.5 billion in bailout money. — Gregory Mott, BostonGlobe.com, "Fannie-Freddie rise as White House proposes privatization," 22 June 2018 Critics said the measure would thwart efforts to fight discriminatory lending, and increase the risk of future bank failures and bailouts. — Herb Jackson, USA TODAY, "House sends Trump bill to roll back some Dodd-Frank banking rules imposed after 2008 meltdown," 22 May 2018 Lawmakers also let stand a veto by Malloy on a bill that would have changed the terms of a $534 million state bailout of Hartford, for which the state agreed to pick up the city’s annual debt payments. — Christopher Keating, courant.com, "All Malloy Vetoes Upheld; Lawmakers Fail On Overrides," 25 June 2018 Even as banks make record profits, their former banker buddies turned regulators are doing them favors by rolling back a rule that protects taxpayers from another bailout. — The Washington Post, OregonLive.com, "Federal Reserve scales back 'Volcker Rule' limits on bank trading," 30 May 2018 Treasury Secretary Henry Paulson on federal bailouts of banks and mortgage backers and what must come next, in an op-ed in The New York Times Exclusive: A U.S. Intelligence Breakthrough in the Persian Gulf? — Newsweek, "Amazing Photos of Bioluminescent Phytoplankton," 14 Mar. 2018 Federal regulators took over the two companies during the 2008 financial crisis, eventually injecting them with $187.5 billion in bailout money. — Gregory Mott, BostonGlobe.com, "Fannie-Freddie rise as White House proposes privatization," 22 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bailout.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

15 Nov 2018

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Time Traveler for bailout

The first known use of bailout was in 1925

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More Definitions for bailout

bailout

noun

Financial Definition of bailout

What It Is

A bailout is financial help for ailing companies.

How It Works

Company XYZ is in the newspaper industry and has seen a dramatic downturn in its advertising sales. The company's board believes that if it can launch an interactive digital version of its product, which has been in development for two years, it could become a viable business again.

Company XYZ publishes the only paper in the county, and Company ABC loves the newspaper. Company ABC agrees to lend Company XYZ enough money to launch the new digital product, and it prices the loan at an interest rate below what Company XYZ could get anywhere else. Essentially, Company ABC gives Company XYZ a bailout.

Bailouts can be loans, but they can also be stock, cash, bonds, or other forms of money.

Why It Matters

Bailouts are essentially monies intended to get companies out of trouble. Often, governments give bailouts to companies whose bankruptcies would cost what the government deems "too many jobs" or cause "too much" damage.

Bailouts are a challenge to capitalism in its purest sense. Critics of bailouts argue, for example, that companies should be left to succeed and fail on their own merits, and that supply and demand in the free markets will always determine the worth of goods and services. Supporters of bailouts argue that bailouts are sometimes the lesser of two evils when it comes to a company failing and displacing thousands of workers.

Source: Investing Answers

bailout

noun