What was the British stock-market crash of 1825 commonly called?
Answer
Panic of 1825
Answer
Panic of 1825
The British stock-market crash of 1825 was commonly called the Panic of 1825.
The panic began in London in December 1825 after a speculative boom in Latin American mining companies and other ventures collapsed. Investors had poured money into companies associated with newly independent Latin American states, often buying shares based on exaggerated claims rather than reliable earnings. When confidence failed, share prices plunged and financial institutions came under severe pressure.
The crisis spread beyond Britain and affected banks and markets in Europe and Latin America. More than 60 British banks failed or suspended payments, according to historical accounts. The Bank of England and other institutions took emergency measures to stabilize the banking system.
The Panic of 1825 is distinct from the U.S. Panic of 1819 and the U.S. Panic of 1837. It also occurred more than a century after the South Sea Bubble, another famous British speculative episode involving a different company and period.
Source: Wikipedia · fact-checked Oct. 2026