Which London-based bank failed in 1866 during a major Victorian-era financial panic?

Overend, Gurney and Company failed in 1866 during a major Victorian-era financial panic.

Overend, Gurney and Company had grown from a bill-broking business into one of Britain’s most important financial institutions. It became a limited company in 1865, but its balance sheet contained substantial problem loans and investments. The firm suspended payments on 10 May 1866.

Its collapse triggered panic in London’s financial system. Depositors and investors rushed to withdraw funds, credit became scarce, and many other companies failed or suffered severe pressure. The Bank of England ultimately received authorization to lend more freely, helping stabilize the banking system.

The episode is distinct from the 1873 Panic and from Barings Bank’s later 1890 crisis. It is also an example of how a bank failure could create a stock-market and credit-market shock before modern deposit insurance existed.