What was the first financial collapse?
Panic of 1857: pervasive USA economic recession w/ bank failures. The world economy was also more interconnected by the 1850s, which also made the Panic of 1857 the first worldwide economic crisis.
The Great Depression of 1929–39
This was the worst financial and economic disaster of the 20th century. Many believe that the Great Depression was triggered by the Wall Street crash of 1929 and later exacerbated by the poor policy decisions of the U.S. government.
The Panic of 1819 was the first widespread and durable financial crisis in the United States that slowed westward expansion in the Cotton Belt and was followed by a general collapse of the American economy that persisted through 1821.
Financial crises are often preceded by asset and credit booms that eventually turn into busts. Many theories focusing on the sources of crises have recognized the importance of booms in asset and credit markets.
Some of the historical examples of financial crises include Tulip Mania, the Credit Crisis of 1772, the Stock Crash of 1929, the 1973 OPEC Oil Crisis, the Asian Crisis of 1997-1998, and the 2008 Global Financial Crisis.
- Washington Mutual (WaMu), Henderson, NV ($309 Billion Assets) ...
- First Republic Bank, San Francisco, CA ($229 Billion Assets) ...
- Silicon Valley Bank, Santa Clara, CA ($209 Billion Assets)
What happened, and what has been done since? On 15 September 2008 the investment bank Lehman Brothers collapsed, sending shockwaves through the global financial system and beyond.
San Francisco-based First Republic Bank goes down as the second-largest failure in U.S. history. Santa Clara, California-based Silicon Valley Bank follows at number three on the all-time list and New York City-based Signature Bank is the fourth-largest bank to fail.
In the mid-2000s, Burry was famous for placing a wager against the housing market and profited handsomely from the subprime lending crisis and the collapse of numerous major financial entities in 2008.
September 26, 2008: Washington Mutual went bankrupt and was seized by the Federal Deposit Insurance Corporation after a bank run in which panicked depositors withdrew $16.7 billion in 10 days.
When was America's first financial panic?
The Panic of 1819 was the first major economic depression in US history. This included lax loan policies from the Second Bank of the United States (BUS) in which no one could pay (leading to the collapse of many banks).
By 1833 there were 23 "pet banks" or state banks with US Treasury funds. The institution of these pet banks led to a huge increase in land speculation, mainly due to the managers' inability to effectively handle and control the nation's money.
Lasting from September 1873 until 1878/9, the economic downturn then became known as the Long Depression after the stock market crash of 1929.
The biggest recession in U.S. history sparked the Great Depression, between 1929 and 1933, though the Great Recession (2007-2009) was the worst in modern times.
Though the economy occasionally sputtered in 2022, it has certainly been resilient — and now, in the first month of 2024, the U.S. is still not currently in a recession, according to a traditional definition.
The failure of Citizens State Bank will cost $76.6 million; the failure of New South Federal Savings Bank is expected to cost $212.3 million; that of Peoples First Community Bank $556.7 million; Independent Bankers' Bank, $68.4 million; and RockBridge Commercial Bank, $124.2 million.
There were 566 bank failures from 2001 through 2024. See Summary by Year below.
Between 1930 and 1933, more than 9,000 banks failed across the country, and this time many were large, urban, seemingly stable institutions. The few state deposit-guarantee funds were quickly overwhelmed.
The Panic of 1819
The history of bank failures in the U.S. begins just over 40 years after the Declaration of Independence was signed. In 1819, the aftermath of the Napoleonic Wars led to global market adjustments that tossed the U.S. into its first of many financial crises.
The collapses of Silicon Valley Bank and Signature Bank in March 2023—then the second- and third-largest bank failures in U.S. history—took consumers by surprise. Subsequently, three more banks failed in 2023: First Republic Bank in May, Heartland Tri-State Bank in July and Citizens Bank of Sac City in November.
What bank is the first to collapse in 1930?
Panic began to subside in early December. But on December 11, the fourth-largest bank in New York City, Bank of United States, ceased operations. The bank had been negotiating to merge with another institution. The New York Fed had helped with the search for a merger partner.
“Respondents on average perceive a 7% probability of global recession in 2024, down from 18% in October,” he wrote. “They also see only a minimal chance – less than 1-in-100 – of an economic slump on the scale experienced in 2009 during the global financial crisis.”
Money manager Michael Burry, who predicted the 2008 housing market collapse, is now betting 90% of his portfolio on a market downturn.
Two of the world's leading economies - Japan and the UK - recently entered into recession, highlighting the financial struggles that countries have been facing after the Covid pandemic.
There is a systemic risk of large-scale bank failures in the U.S. in 2024 due to charge-offs and write-downs emanating from the commercial real estate sector.
