Too Big To Fail

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Dictionary Says

Definition of 'Too Big To Fail'

The idea that a business has become so large and ingrained in the economy that a government will provide assistance to prevent its failure. "Too big to fail" describes the belief that if an enormous company fails, it will have a disastrous ripple effect throughout the economy.

Investopedia Says

Investopedia explains 'Too Big To Fail'

Large companies generally do business with many other companies for supplies and services. If a large company fails, the companies that rely on it for portions of their income might be brought down as well, not to mention the number jobs that would be eliminated. Therefore, if the cost of a bailout is less than the cost of the failure to the economy, a government may decide that a bailout is the most cost-effective solution. 
Search results for

'Too Big To Fail'

  • Is The US Government Too Big To Fail?

    http://www.investopedia.com/articles/economics/09/us-government-too-big-to-fail.asp
    Some think that the US government is too big to fail, but one must only
    look at historical examples to know that it's not true. ...

  • Is Citi Too Big To Succeed?

    http://stocks.investopedia.com/stock-analysis/2009/Is-Citi-Too-Big-To-Succeed-C-JPM-BAC-WFC-COF1023.aspx
    ... We've all heard the phrase "too big to fail," but how about "too big to succeed?"
    Citigroup's (NYSE: C) earnings report released last week was a convoluted ...

  • Bank Regulations: Good Or Bad? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0310/Bank-Regulations-Good-Or-Bad.aspx
    ... Thus, they argue, the Volker Rule would still leave many "too big to fail" financial
    conglomerates threatening the stability of the global economic system. ...

  • The Economics Of A Successful Marriage - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0411/Apply-Economics-For-A-Successful-Marriage.aspx
    ... t always "fair." (Learn how specialization can make production efficient in 3 Secrets
    Of Successful Companies.) Moral Hazard (Too Big to Fail) This overused ...

  • Whirlpool Cleans Up

    http://stocks.investopedia.com/stock-analysis/2010/Whirlpool-Cleans-Up-WHR0428.aspx
    ... (Some think that the US government is too big to fail, but one must only
    look at historical examples to know that it's not true. ...

  • Profit From Mortgage Debt With MBS

    http://www.investopedia.com/articles/06/mortgagebackedsecurities.asp
    ... Is The US Government Too Big To Fail? Is The US Government Too Big To Fail?
    Some think that the US government is too big to fail ...

  • Building Materials Stocks Look For Construction Boost

    http://stocks.investopedia.com/stock-analysis/2009/Building-Materials-Stocks-Look-For-Construction-Boost-TXI-CRH-VMC-MLM-JHX0605.aspx
    ... (Some think that the US government is too big to fail, but one must only
    look at historical examples to know that it's not true. ...

  • Financial Crisis Report Card: One Year Later - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/Financial-Crisis-Report-Card-One-Year-Later.aspx
    ... These companies were deemed "too big to fail", and have received tens of billions
    in emergency loans. ... (Learn more in Is The US Government Too Big To Fail?). ...

  • Falling Giant: A Case Study Of AIG

    http://www.investopedia.com/articles/economics/09/american-investment-group-aig-bailout.asp
    ... credit crunch weren't? (Read about one company that didn't survive financial crisis
    in The Rise And Demise Of New Century Financial.) Too Big To Fail Simply put ...

  • Mergers and Acquisitions: Why They Can Fail | Investopedia

    http://www.investopedia.com/university/mergers/mergers5.asp
    ... caught up in the thrill of the big deal. ... The study concludes that companies often
    focus too intently on ... momentum is one reason so many mergers fail to create ...

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