Too big to fail

usgb
adjective

Describing a business or organization that is so large and so interconnected with other businesses and the economy, that its failure would be disastrous, and the government or other authorities have to step in to avoid this.

Many people worry that the banks are 'too big to fail', meaning that if they were to go under, it would cause a major financial crisis.
Visual representation of "too big to fail" - Describing a business or organization that is so large and so interconnected with other businesses and the economy, that its failure would be disastrous, and the government or other authorities have to step in to avoid this.

Often appears as...

  • banks are too big to fail
  • corporations are too big to fail

Usage tips

Formal

Economic

Definition 1 of 1
Visual representation of "too big to fail"
LampPro Tip 1/3

Economic Impact

Understand it suggests the collapse of such an entity can severely damage the economy.

Illustration for Economic Impact
If this airline goes bankrupt, it's too big to fail; the government will likely intervene.
LampPro Tip 2/3

Government Role

Recognize that the term implies governmental or authoritative intervention is considered necessary.

Illustration for Government Role
This bank is too big to fail; it's expected to receive a bailout.
LampPro Tip 3/3

Interconnectedness

The term refers to organizations that have many dependent relationships with other entities.

Illustration for Interconnectedness
Our car factory is too big to fail; too many jobs and small businesses rely on it.
Visual representation of the word "Too big to fail"

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