In this article we are going to list the 5 largest bankruptcies in American history. For a detailed coverage of this topic and a more comprehensive list please take a look at the 15 Largest Bankruptcies in American History.
5. CIT Group Inc.
Total assets of the company at the time of bankruptcy (in millions): $80,448
CIT declared bankruptcy in November 2009 despite earlier attempts to stave off bankruptcy. It then reorganized and currently operates as an American financial services company.
4. General Motors Corporation
Total assets of the company at the time of bankruptcy (in millions): $91,047
General Motors Company (NYSE:GM) is one of the biggest automakers in the world. In March 2009, General Motors Company (GM) had received over $17 billion in bailouts but was still unable to turn around its fortunes. This led to a bankruptcy declaration in June 2009, with General Motors Corporation being formed to handle bankruptcy while General Motors Company (GM) reorganized and received nearly $50 billion in investment from the government.
3. WorldCom Inc.
Total assets of the company at the time of bankruptcy (in millions): $103,914
The WorldCom scandal, combined with the Enron scandal, led to the fall of one of the biggest accounting firms in the world. Having been the second largest telephone company in the U.S. after AT&T Inc. (NYSE:T) for a time, the company collapsed after an accounting scandal to inflate the company’s assets was exposed.
2. Washington Mutual Inc.
Total assets of the company at the time of bankruptcy (in millions): $327,913
The top two entries in the biggest bankruptcies in U.S. history both met their demise in 2008. In 2008, more than $16.7 billion were withdrawn in a 9-day bank run which led to the seizure of WaMu bank by the United States Office of Thrift Supervision. The banking subsidiaries were sold to JPMorgan Chase & Co. (NYSE:JPM) for $1.9 billion. In terms of assets under management, this is the biggest bankruptcy in the country.
1. Lehman Brothers Holdings
Total assets of the company at the time of bankruptcy (in millions): $691,063
Easily topping the list of the 15 biggest bankruptcies in American history is Lehman Brothers Holdings, the biggest casualty of the 2008 financial crisis. The global financial services firm was over 150 years old at the time of its demise, having been founded in 1850.
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