Cronyism
A good
example of cronyism is the bailout of some large US banks following the
financial crisis of 2008. The financial collapse due to government backed
mortgages led some large banks into bankruptcy. Treasury Secretary and
ex-banker Tim Geithner lent government money to his associates in these banks
limiting their potential loss. Taxpayers were holding the bag. Other smaller
more efficient banks should have taken over assets of the failed banks.