A bailout by any other name is still a bailout.

Prudent government intervention to support a fragile banking system in 2008, is still vociferously attacked and characterized by many as a sell out  to Wall Street greed. The CARES Act now provides US$2 Trillion relief to individuals, businesses, states and other actors. Yet, ostensibly because bulk proceeds go to Main Street participants, I don’t hear a single dissenting voice! As one who had a front row seat on Wall Street  and helped shape response to the 2008 financial crisis, I find this rather hypocritical. A bailout by any other name is still a bailout, and I bet Milton Friedman would agree!

The amateur financial historian within me, led me to take inventory of major government interventions then – the major types of action taken, affected companies and governments rationale. I hope this sets the record straight so that we can compare it with the Cares Act. I hope you find this visual useful.



Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech ActiveAllocator.com, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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