Back to the Trough
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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