Historical bank runs in the United States have been a significant contributor to the country's financial and economic history. Here are some of the notable bank runs in the US:
Panic of 1907: One of the most severe financial crises in US history, the Panic of 1907, saw a series of bank runs that led to the collapse of many banks and trusts. The crisis was caused by a series of events, including a failed attempt to corner the copper market, the San Francisco earthquake of 1906, and a series of bank failures. The crisis led to the creation of the Federal Reserve System in 1913.
Great Depression: The stock market crash of 1929 led to a wave of bank runs across the country. By 1933, over 4,000 banks had failed, causing widespread financial and economic devastation. The crisis led to the creation of several government programs and regulations, including the Federal Deposit Insurance Corporation (FDIC), which guarantees bank deposits.
Savings and Loan Crisis: In the 1980s, a crisis in the savings and loan (S&L) industry led to a series of bank runs and failures. The crisis was caused by a combination of factors, including risky lending practices, fraud, and deregulation. The government ultimately spent over $100 billion to bail out failing S&Ls.
2008 Financial Crisis: The subprime mortgage crisis in the early 2000s led to a wave of bank failures and a global financial crisis in 2008. The crisis was caused by a complex set of factors, including lax lending standards, financial innovation, and regulatory failures. The government took a series of measures to stabilize the financial system, including the Troubled Asset Relief Program (TARP), which provided over $700 billion to bail out banks and other financial institutions.
In conclusion, bank runs have been a recurring theme in the United States' financial history, often leading to significant economic and social consequences. These crises have also led to the creation of various regulations and institutions to mitigate the risk of bank runs and prevent future financial crises.