Calculated risks are an unavoidable aspect of running a business, regardless of whether you are starting a small coffee shop or heading a large corporation. Taking significant risks can lead to substantial rewards, but sometimes, as evidenced by the examples of companies discussed below, such risk-taking can also result in significant failures and some of the largest bankruptcies in U.S. history.
In this report, we will be taking a look at the biggest bankruptcies in American history. As of February 2024, the largest all-time bankruptcy in the United States remained Lehman Brothers, a global financial services firm. Prior to its bankruptcy, the New York-based investment bank had $691.06 billion in assets ($613 billion in liabilities) and was the fourth-largest investment bank in the U.S.
Lehman Brothers’ bankruptcy was mainly due to their significant involvement in the subprime mortgage crisis, which led to their exposure to a considerable amount of worthless assets when the housing market collapsed. The collapse of Lehman Brothers created a ripple effect globally, worsened the financial crisis of 2008, and resulted in the most severe global recession since the Great Depression. Below is a list of the biggest bankruptcies in U.S. history:
Biggest Bankruptcies in American History
| Rank | Company | Total assets pre-bankruptcy (U.S. dollars) | Bankruptcy date |
|---|---|---|---|
| 1 | Lehman Brothers Holdings, Inc. | $691.06 billion | 15-Sep-08 |
| 2 | Washington Mutual | $327.91 billion | 26-Sep-08 |
| 3 | Silicon Valley Bank | $209 billion | 10-Mar-23 |
| 4 | Signature Bank | $110.4 billion | 12-Mar-23 |
| 5 | Worldcom Inc. | $103.91 billion | 2-Jul-02 |
| 6 | General Motors | $82.29 billion | 1-Jun-09 |
| 7 | Pacific Gas and Electric Company | $71 billion | 14-Jan-19 |
| 8 | CIT Group | $71 billion | 1-Nov-09 |
| 9 | Enron | $65.5 billion | 2-Dec-01 |
| 10 | Conseco | $61.39 billion | 17-Dec-02 |
| 11 | MF Global | $41 billion | 31-Oct-11 |
| 12 | Chrysler | $39.3 billion | 30-Apr-09 |
| 13 | Thornburg Mortgage | $36.52 billion | 5-Jan-09 |
| 14 | Pacific Gas and Electric Company | $36.15 billion | 6-Apr-01 |
| 15 | Texaco | $34.94 billion | 4-Dec-87 |
| 16 | Financial Corporation of America (American Savings and Loan Association) | $33.86 billion | 9-Sep-88 |
| 17 | Refco | $33.33 billion | 17-Oct-05 |
| 18 | IndyMac Bancorp | $32.73 billion | 31-Jul-08 |
| 19 | Global Crossing | $30.19 billion | 28-Jan-02 |
| 20 | Bank of New England | $29.77 billion | 1-Jul-91 |
| 21 | General Growth Properties | $29.56 billion | 16-Apr-09 |
| 22 | Lyondell Chemical | $27.39 billion | 1-Jun-09 |
| 23 | Calpine | $27.21 billion | 20-Dec-05 |
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