From Enron to Lehman Brothers: the biggest cracks in US history
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The crack of Silicon Valley Bank is the second largest in American banking history but if we broaden our gaze to the entire US economy, the cases are numerous and of greater dimensions.
Creative finance has bent the former telephony and energy giants, who have converted into investment banks specializing in risky derivatives. Subprime mortgages have swept the world’s financial sector, giving rise to the largest bankruptcy in history and bringing the Madoff scandal into the open. And now the “explosive mix” of interest rate hikes and cryptocurrencies is sinking Silicon Valley Bank, the institute specializing in financing tech start-ups and Californian wines, and Signature Bank, the New York bank active in digital currencies .
Enron and Lehman Brothers have made Company America tremble, which now fears the repetition of a new devastating crisis for the banking system and the economy, already severely tested by the pandemic. The American authorities reacted promptly to the crisis by setting up a parachute that guarantees all deposits, even those above the federal limit of $250,000. However, at least on this Monday when the markets reopened, fears of contagion prevailed and almost all bank stocks – American but also European – suffered heavy losses.
Here are the major cracks and corporate scandals in American history.
Enron. In 2001 what was an American jewel declares bankruptcy. A collapse marked by unprecedented corporate scandals, with managers who raked in millions of dollars knowing they were rigging the accounts.
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