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Bank Failures and Suspensions in the United States, 1864-2008: Three Charts* David Moss Harvard Business School (with the assistance of Darin Christensen and Arthur Kimball-Stanley) December 14, 2009 * The essential elements of these charts are drawn from David Moss, “An Ounce of Prevention: The Power of Public Risk Management,” Harvard Business School Working Paper 09‐087, January 2009, published as “An Ounce of Prevention: Financial Regulation, Moral Hazard, and the End of ‘Too Big to Fail’,” Harvard Magazine, September – October 2009. Bank Failures (Suspensions) in the United States, 1864-2000 4500 Federal deposit insurance enacted as part of Glass-Steagall (June 1933) 4000 Start of Bank Deregulation: Depository Institutions Deregulation and Monetary Control Act (March 1980) 3500 3000 2500 2000 1500 1000 500 Sources: Historical Statistics of the United States: Colonial Times to 1970 (Washington, D.C.: Government Printing Office, 1975), Series X-741 (p. 1038); “Failures and Assistance Transactions,” Table BF02, FDIC website (http://www2.fdic.gov/hsob/index.asp). Chart prepared by David Moss, with the assistance of Arthur Kimball-Stanley. 2000 1996 1992 1988 1984 1980 1976 1972 1968 1964 1960 1956 1952 1948 1944 1940 1936 1932 1928 1924 1920 1916 1912 1908 1904 1900 1896 1892 1888 1884 1880 1876 1872 1868 1864 0 Bank Failures and Suspensions, 1864-2008 (with data on deposits starting in 1921) 4500 7 Federal Deposit Insurance enacted as part of Glass-Steagall (June 1933) 4000 Start of Bank Deregulation: Depository Institutions Deregulation and Monetary Control Act (March 1980) 6 3500 5 Percentage of GDP 4 2500 2000 3 1500 2 1000 1 500 Total Failures Total Deposits of Failed Institutions (% GDP) 2008 2005 2002 1999 1996 1993 1990 1987 1984 1981 1978 1975 1972 1969 1966 1963 1960 1957 1954 1951 1948 1945 1942 1939 1936 1933 1930 1927 1924 1921 1918 1915 1912 1909 1906 1903 1900 1897 1894 1891 1888 1885 1882 1879 1876 1873 1870 0 1867 0 1864 Institutions 3000 Total Deposits of Assisted Institutions (% GDP) Sources: Historical Statistics of the United States: Colonial Times to 1970. Series X-741 (p. 1038). Washington, D.C.: Government Printing Office, 1975; "Federal Deposit Insurance Corporation Failures and Assistance Transactions United States and Other Areas," Table BF01, FDIC website (http://www2.fdic.gov/hsob); Sutch, Richard. “Gross domestic product: 1790– 2002.” Table Ca9-19 in Historical Statistics of the United States, Earliest Times to the Present: Millennial Edition, eds. Susan B. Carter et al. New York: Cambridge University Press, 2006; Bureau of Economic Analysis. "Gross Domestic Product." NIPA Table 1.1.5. (http://www.bea.gov/national/nipaweb/). Chart prepared by David Moss, with the assistance of Darin Christensen. Bank Failures and Suspensions, 1864-2008 (with data on deposits starting in 1921) 12 4500 Start of Bank Deregulation: Depository Institutions Deregulation and Monetary Control Act (March 1980) Federal Deposit Insurance enacted as part of Glass-Steagall (June 1933) 4000 10 8 2500 6 2000 4 1500 1000 2 500 Total Failures Total Deposits of Failed Institutions (% Total Commercial Bank Deposits) 2008 2005 2002 1999 1996 1993 1990 1987 1984 1981 1978 1975 1972 1969 1966 1963 1960 1957 1954 1951 1948 1945 1942 1939 1936 1933 1930 1927 1924 1921 1918 1915 1912 1909 1906 1903 1900 1897 1894 1891 1888 1885 1882 1879 1876 1873 1870 0 1867 0 1864 Institutions 3000 Total Deposits of Assisted Institutions (% Total Commercial Bank Deposits) Sources: Historical Statistics of the United States: Colonial Times to 1970. Series X-741 (p. 1038). Washington, D.C.: Government Printing Office, 1975; "Federal Deposit Insurance Corporation Failures and Assistance Transactions, United States and Other Areas," Table BF01, FDIC website (http://www2.fdic.gov/hsob); Bodenhorn, Howard. “Commercial banks – liabilities: 1834–1980.” Table Cj265-272 in Historical Statistics of the United States, Earliest Times to the Present: Millennial Edition. New York: Cambridge University Press, 2006; "Federal Deposit Insurance Corporation Deposits FDIC-Insured Commercial Banks United States and Other Areas," Table CB15, FDIC website (http://www2.fdic.gov/hsob). Chart prepared by David Moss, with the assistance of Darin Christensen. Percentage of Total Commercial Bank Deposits 3500
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