Friday the 13th mini-crash
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The Friday the 13th mini-crash, or Black Friday, was a stock market crash that occurred on Friday, October 13, 1989. The crash was apparently caused by a reaction to a news story of the breakdown of a $6.75 billion leveraged buyout deal for UAL Corporation, the parent company of United Airlines. When the UAL deal fell through, it helped trigger the collapse of the junk bond market. The deal unraveled because the Association of Flight Attendants pulled out of the deal when management, in negotiations over an Employee Stock Ownership Plan (ESOP) designed to fund the leveraged buyout, refused to agree to terms.[1]
The close
Moments after the UAL deal fell through, the
Survey
Many investors were left stunned. Since most market participants blame the UAL deal as the culprit, survey researcher William Feltus and
The market professionals also believed that the UAL story was just an attention-grabber, with traders trying to find a reason to sell: 50 percent believed that was the reason while 30 percent believed the news would reduce future takeovers.[2]
Aftermath
The crash is often pinpointed as the start of the
See also
- Black Monday, the global stock market crash on October 19, 1987
- Friday the 13th, considered an unlucky day in Western superstition
References
- ISBN 978-0743204125.