The 1866 Banking Collapse Nobody Knows About (But Should) | When "Too Big To Fail" Actually Failed
The 1866 Banking Collapse Nobody Knows About (But Should) | When "Too Big To Fail" Actually Failed
The Timeless Investor: 9-26-2025
The BIGGEST bank in the world collapsed in 12 hours.
Over 200 companies failed. Global markets crashed. Yet almost nobody today has heard of Black Friday 1866 - the banking disaster that created modern finance as we know it.
Overend, Gurney & Company wasn't just big. They were THE lender of last resort before central banks existed.
They were considered safer than the Bank of England itself. They'd been in business for 60 years. They had just IPO'd at 9X oversubscription. Then they collapsed in a single day.
This isn't just history - it's a WARNING. The same pattern that destroyed Overend Gurney is playing out RIGHT NOW in:
Regional banks reaching for yield Private credit funds acting like banks
Short-term debt funding long-term projects
Real estate syndicators promising liquidity on illiquid assets
Learn why Silicon Valley Bank's 12-hour collapse in 2023 was identical to Overend Gurney's fall in 1866 - and what that means for YOUR investments.
KEY TOPICS COVERED:
Shadow banking throughout history
Bank runs in the digital age Leverage + illiquid assets = death
Why boring businesses fail when they try to be exciting
The danger of "reputation lag" IPO red flags throughout history
Central banking evolution Victorian era finance
The birth of limited liability as a weapon