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Bailout in sentence

528 examples of Bailout in a sentence

Indeed, this is another pernicious, albeit subtle, effect of the sub rosa guarantee of banks’ derivatives portfolios: the knowledge that, if a large bank fails, it will probably receive a government bailout – including for its derivatives desk – spurs traders to focus their dealings on big banks.
That creates a vicious cycle: the bailout option for too-big-to-fail banks concentrates the derivatives market among a few major institutions, increasing further their systemic importance.
Agreements with, and access to, the International Monetary Fund and Europe’s new bailout fund provide (soft) constraints.
To see the link, recall the “fiscal compact” to eliminate structural budget deficits that Germany insisted upon as a condition of agreeing to bailout loans for distressed governments and banks.
Germany, traumatized by runaway inflation in the 1920’s, and its dreadful political consequences, adamantly opposed any bailout.
The latest Greek bank bailout constitutes a cautionary tale about how politics – in this case, Europe’s – is geared toward maximizing public losses for questionable private benefits.
At least, Greeks were promised, this bailout would secure the country’s banks once and for all.
In 2013, once that tranche of funds had been transferred by the European Financial Stability Facility (EFSF), the eurozone’s bailout fund, to its Greek franchise, the Hellenic Financial Stability Facility, the HFSF pumped approximately €40 billion into the four “systemic” banks in exchange for non-voting shares.
The Troika celebrated the hedge funds’ interest as evidence that its bank bailout had inspired private-sector confidence.
By June 2014, the IMF was leaking reports that more than €15 billion was needed to restore the banks’ capital – a great deal more money than was left in Greece’s second bailout package.
By the end of 2014, with Greece’s second bailout running out of time and cash, and the government nursing another €22 billion of unfunded debt repayments for 2015, Troika officials were in no doubt.
To maintain the pretense that the Greek “program” was on track, a third bailout was required.
The problem with pushing through a third bailout was twofold.
First, the Troika-friendly Greek government had staked its political survival on the pledge that the country’s second bailout would be completed by December 2014 and would be its last.
And crush us it did by engineering a six-month-long bank run, shutting down the Greek banks in June, and causing Prime Minister Alexis Tsipras’s capitulation to the Troika’s third bailout loan in July.
And with the latest round of recapitalization, the cost of the Troika’s determination to stick to the practice of extend-and-pretend bailout loans just got higher.
The challenge facing China as it confronts the problem of excess capacity is that those who would otherwise lose their jobs will require some form of support; firms will argue for a robust bailout to minimize their losses.
Only after joining forces in providing a €750 billion bailout package, did the eurozone’s member states and the IMF prevent another systemic crash.
To minimize that risk, the Troika reserves currently devoted to the Greek bailout should be used to limit exchange-rate overshooting; capital controls would help, too.
One team of economists has found that respondents “primed” by references to lobbyists or the Wall Street bailout display significantly lower levels of support for anti-poverty policies.
The political lesson Ireland’s leaders have taken from the bailout experience is that loyalty to the status quo, rather than a combination of truth-seeking and radical action, is the best way forward.
But imagine the outrage with which Trump’s supporters would greet a “taxpayer bailout” of a foreign country or Mexican officials’ anger over having to secure assistance from the same Trump administration responsible for their country’s ills.
The first bank that was declared “too big to fail” was Continental Illinois, which received a bailout in 1984 from President Ronald Reagan.
And austerity and reform fatigue in the eurozone periphery has been matched by bailout fatigue in the core, boosting support for a range of anti-euro parties in Germany, the Netherlands, and Finland.
Today, that first lesson appears to have been learned: various bailout and stimulus packages have stimulated depressed economies sufficiently for us to have a reasonable expectation that the worst of the slump is over.
Despite the bail-in of four local banks, the bailout of Monte dei Paschi (one of Italy’s systemically important banks), the liquidation of two regional banks, and the market-led rescue of the mid-size banking group Carige – all within two years – the banking system has yet to be stabilized.
Following last year’s bailout, Italy’s Treasury owns about 70% of the bank.
More recently, he accused EU leaders of crafting Greece's bailout deal in a way that would enable them to “plunder" the country's assets.
Thus, most television channels speak of the bailout deal just as Tsipras does: as the proximate cause of austerity, a result of neoliberal dogma.
When the US Treasury announced a bailout of mortgage giants Fannie Mae and Freddie Mac in July, the rally lasted just four weeks.
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