Which London-based bank collapsed in 1890 during the Baring Crisis?

Baring Brothers collapsed in 1890 during the Baring Crisis.

Baring Brothers, a major London merchant bank, became unable to meet its obligations after losses connected with investments in Argentina. The crisis reached a critical point when the bank’s liabilities threatened confidence in London’s financial system.

The Bank of England organized a rescue fund with support from other banks and the government. This action prevented an immediate disorderly failure and helped contain the panic. Baring Brothers was later reorganized as Baring Brothers & Co., rather than simply disappearing from the financial world.

The episode shows how international capital markets could transmit problems across borders even in the nineteenth century. Argentina’s financial difficulties were central to the crisis, while London’s role as a global financial center made the bank’s distress internationally significant.