What Constitutes a ‘Bailout’? Did US Banks Get One?: QuickTake

A series of government-backed bank rescues have reignited a debate over what constitutes a “bailout.” The term became a dirty word in the US after the government rescued banks, insurers, automakers and others after the financial crisis of 2008-2009, leaving many highly compensated executives unscathed. Critics of the latest rescues insist that the label applies this time. The Biden administration counters that the term doesn’t fit the measures taken because taxpayers aren’t on the hook for losses and many investors were wiped out.

Watch: What caused the collapse of Silicon Valley Bank?

Source: Bloomberg

1. What’s a bailout, exactly?

A bailout is commonly defined as financial support by a government ...