Financial assistance provided to a bank or savings institution that is undercapitalized do to eroding earnings for loan losses, drop in value of investments held as a result of poor market conditions or a rapid loss outflow of deposits. The FDIC may bailout the depositors by infusion capital or the FDIC arrange for the sale of the bank or savings institution to healthier one. Even when the bailout involves the sale of the bank, the FDIC often provides assistance to cover some of the problem areas of the failed institution.

No user commented in " Bailout "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)