The U.S. stock-market panic that began after the collapse of Ohio Life Insurance and Trust Company in 1857 was the Panic of 1857.
Ohio Life failed in August 1857 after hidden problems involving speculative loans and securities were exposed. The failure damaged confidence, and a broader financial panic spread through banks, railroads, and businesses. The New York Stock Exchange suspended trading for the first time in its history on October 13, 1857.
The crisis was also linked to the collapse of land and railroad speculation, a sharp decline in European demand for American exports, and the failure of the SS Central America, which was carrying California gold. The panic produced a serious recession in the United States.
The Panic of 1857 is distinct from the Panic of 1837 and the Panic of 1873. It also occurred before the Civil War, which began in 1861. Recovery was uneven, and the financial shock affected both Northern and Southern economies.