Too Big to Fail

“Too Big to Fail” (TBTF) are entities that are vital to a nation’s economy, their failure would cause severe economic damage. Historically, the U.S. government has stepped in to support these crucial players, preventing potential crises by providing bailouts.

The majority of firms that are considered TBTF are banks and other companies which provide financial services. Some examples are Bank of America, Goldman Sachs, and Morgan Stanley. Other businesses deemed TBTF include General Motors, Chrysler, and AIG.