noun (plural)
Bank bailouts refer to financial assistance provided by governments or central banks to prevent large financial institutions from collapsing during times of crisis. These bailouts typically involve injecting capital, guaranteeing debts, or acquiring failing assets to maintain economic stability and protect the broader financial system.
Bank bailouts became widely known during the 2008 global financial crisis, when multiple major banks received emergency support to prevent systemic failure. Critics argue that bailouts encourage reckless behavior and place the burden on taxpayers, while supporters claim they are necessary to avoid economic collapse.
The concept was notably referenced in Bitcoin’s genesis block, which embedded the headline: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” signaling the motivation for a decentralized, trustless financial system.