The bailouts of 2008 have also been politically unpopular, with many critics insisting that government should not intercede in the dynamics of a . (For more on government intervention, see )
ast week, the Congressional Budget Office (CBO) released a with what seemed like good news: the bailout of 2008 – which fronted $700bn in taxpayer funds to prop up the financial institutions that brought the economy to the brink – ended up cheaper than expected. The price tag was revised down to $21bn from $24bn.
bailout 2008 image search results
Under new EU rules, government funds cannot inject money into banks if bond holders have not taken losses first. The move is intended to avoid a re-run of the tax payer bailouts of 2008 but was targeted at major City investors. In Italy, though, small investors could get hit. Some €2.1bn of MPS bonds are owned by retail investors – people, rather than financial institutions – who face taking losses. Depending on how the recapitalisation is structured, bond holders might be able to avoid these losses.