What is 'Too Big To Fail'?
"Too big to fail" describes the concept whereby a business has become so large that a government will provide assistance to prevent its failure because not doing so would have a disastrous ripple effect throughout the economy. If a large company fails, companies that rely on it for portions of their income might also be extinguished along with the employment they provide. Therefore, if the cost of a bailout is less than the cost of the failure to the economy, a government may decide a bailout is the most cost-effective solution.
Read more: Too Big To Fail https://www.investopedia.com/terms/t/too-big-to-fail.asp#ixzz57fSVNtQT
Follow us: Investopedia on Facebook
