New Money

The 10 Biggest Bankruptcies in History

By Katy Marquardt

Posted: September 19, 2008

This has been a week of superlatives. AIG: the biggest government bailout. Lehman: the biggest bankruptcy. Russia: the worst financial crisis since the country defaulted a decade ago (and now home to the world's cheapest stocks). What's more, the Dow Jones industrial average dropped to its lowest close in more than two years on Wednesday. And today, U.S. stocks rallied the most in six years.

Here's a list to cap the week off. The Consumerist posted a list of the 10 Biggest Chapter 11 Bankruptcies in U.S. History (culled from a CNBC slideshow and Bankruptcydata.com). Drum roll, please:

10. United Airlines
Assets: $25.2 billion
Date Filed: Dec. 9, 2002

9. Pacific Gas and Electric
Assets: $29.8 billion
Date Filed: April 6, 2001

8. Global Crossing
Assets: $30.2 billion
Date Filed: Jan. 28, 2002

7. Refco
Assets: $33.3 billion
Date Filed: Oct. 17, 2005

6. Financial Corp. of America
Assets: $33.9 billion
Date Filed: Sept. 9, 1988

5. Texaco
Assets: $35.9 billion
Date Filed: April 12, 1987

4. Conseco
Assets: $61.4 billion
Date Filed: Dec. 18, 2002

3. Enron
Assets: $63.4 billion
Date Filed: Dec. 2, 2001

2. Worldcom
Assets: $103.9 billion
Date Filed: July 21, 2002

1. Lehman Bros.
Pre-Bankruptcy Assets: $639 billion
Date Filed: Sept. 15, 2008

It is amazing how Obama is going to bail us out, come on??? get real, hold on to your back pocket cause here it comes!!!

of @ Sep 29, 2008 21:35:25 PM

Data set question

Are these in dollars adjusted for inflation? Its difficult to compare dollars from different times - or maybe compare the bailouts to the average cost of living at the times for a family of four (2 adults, 2 kids - energy and food prices included).

Al - while I'm no fan of Republicans, to use B follows A so A causes B is faulty reasoning. (The bankrupcies followed a Republican victory, so the Republican victory caused the bankrupcies? Not necessarily.)

John - you seem to have a broad definition of communism. So, if a government interferes with the markets or provides any programs for its people it is communism? That means feudalism never existed, for a fuedal lord had many obligations to his subjects. Personally, as a tax paying citizen, I feel my government has some level of obligation to provide for its citizens. This is the foundation of the military - they protect all equally within a country from external invasion. How "communistic" to not expect each person to personally take up arms and defend themselves. Heck, they even socialized police and fire - lets go back to the good old days when you had to pay up front if your house was burning down. End these "welfare" programs. Also, I believe Obama has never stated any membership of intent of membership into the communist party. You're bias is just as repugnant as those who view all Republicans as greedy pro-business pro-wealthy aristocrats. Sorry, conservative and liberal aren't cuss words.

M Dillenbeck of WI @ Sep 22, 2008 13:47:35 PM

bankruptcies

When will the Justice Department start prosecuting and imprisoning the execs of publicly traded companies? Send a strong message to these wealthy crooks that the public demands accountability.

Both parties' leaders "play golf" with these crooks and incompetents, socialize with them, accept donations from them, and so on. Neither party cares about the working middle class of America...and the few who do have to deal with idiots within their own parties...most don't even understand economics--Congress or Presidents.

I grieve for my country, more every year. Bernie Ebbers needed only a few years to ruin a fine company like MCI, and our elected "leaders" at all levels, with their pea brains and big mouths, have needed only since the 1960's to start and oversee America's continued slide into a serious Depression.

laura of TX @ Sep 21, 2008 21:41:00 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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