“Too big to fail” describes a business or business sector so ingrained in a financial system or economy that its failure would be disastrous. The government will consider bailing out a corporate entity or a market sector, such as Wall Street banks or U.S. carmakers, to prevent economic disaster.

The Emergency Economic Stabilization Act of 2008, following the failure of banks during the financial crisis of 2007-2008, included the $700 billion Troubled Asset Relief Program (TARP).