What name was given to the October 13, 1989, U.S. stock-market crash triggered by the collapse of a leveraged buyout?

The October 13, 1989, U.S. stock-market crash was called the Friday the 13th mini-crash. The Dow Jones Industrial Average fell 190.58 points, or about 6.9%, in one trading session.

The immediate catalyst was the collapse of a proposed $6.75 billion leveraged buyout of United Airlines by UAL Corporation employees and management. Investors feared that the deal’s failure signaled broader weakness in highly leveraged corporate finance, especially the market for junk bonds.

The episode occurred during a period of intense takeover activity and financial innovation. Although the decline was severe, it was much smaller and shorter-lived than the October 1987 crash. It is sometimes confused with other named market declines, but its distinctive label comes from its date rather than from a broader international crisis.