Historian says WaMu failure not the biggest in US history
The failure of Washington Mutual put at risk $1.9bn in assets, or $1,900,000,000.
US GDP today is about $13,800bn, or $13,800,000,000,000.
The assets put at risk represent therefore around .01% of GDP. Which is a big deal, and we’re glad for the FDIC and JP Morgan Chase.
Consider, though, the failure in 1930 of Bank of United States. (Note: the absence of definite articles is critical, this was a private bank, not an official entity.) It’s supposed to have put at risk maybe $160m, or $160,000,000.
Which makes it sound smaller than the failure of WaMu, widely described today as the largest bank failure in US history.
But US GDP in 1930 was around $91.2bn, or $91,200,000,000.
So the 1930 failure put at risk perhaps .18% of GDP.
Read entire article at Historian Eric Rauchway at the Edge of the American West (blog)
US GDP today is about $13,800bn, or $13,800,000,000,000.
The assets put at risk represent therefore around .01% of GDP. Which is a big deal, and we’re glad for the FDIC and JP Morgan Chase.
Consider, though, the failure in 1930 of Bank of United States. (Note: the absence of definite articles is critical, this was a private bank, not an official entity.) It’s supposed to have put at risk maybe $160m, or $160,000,000.
Which makes it sound smaller than the failure of WaMu, widely described today as the largest bank failure in US history.
But US GDP in 1930 was around $91.2bn, or $91,200,000,000.
So the 1930 failure put at risk perhaps .18% of GDP.