Back to the Trough
Feb 19 2008
The Bankers' Bailout
Corporations
Lockheed Aircraft, one of the early incarnations of Lockheed Martin, was in bad shape in 1971. Thanks in part to $250 million in loan guarantees passed by Congress, the firm would recover and merge with aerospace giant Martin Marietta in 1995.
Governments
In 1975, President Ford left a struggling New York City high and dry. But President Clinton came to Mexico's aid in 1995 after a rapid devaluation of the peso, persuading countries and banks to lend the country $50 billion.
Banks
In 1984, a slew of risky loans gave rise to rumors that Continental Illinois was near insolvency. The federal government did more than just bail the bank out; it effectively took over. The rescue effort succeeded, and Continental survived to be gobbled up by Bank of America in 1994.
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