A financial crisis in Argentina. The London merchant bank of Baring Brothers was the country's financial agent in Europe, where a crisis of confidence occurred over the inflationary policy of President Juarez Celman (1886–90). The President gave way to his deputy Carlos Pellegrini, who had to stabilize the currency and adopt the gold standard before London would give any more credit. One result was heavy urban unemployment, although the refrigerated beef and corn industries continued to expand. Approximately a century later (1995) Barings Bank collapsed as a result of unmonitored loss-making speculation by a futures dealer, Nick Leeson, on the Singapore markets.
Subjects: World History.