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Shotgun marriage

A shotgun marriage is a tactic used by Federal Reserve Board or other government bodies to try to resolve individual financial company crises.

Expanded Definition

When a financial company gets in trouble and is of a size that the government becomes concerned that its potential bankruptcy could adversely affect markets, the government will often use moral suasion to encourage the company to sell itself to another company. Usually this can be accomplished through closed-door meetings or public threats. The government prefers this to direct intervention as it involves no government money.

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