Friday The 13th Mini-crash
The Friday the 13th mini-crash refers to the stock market crash that occurred on Friday, October 13, 1989. The crash was apparently caused by a reaction to a news story of the break-down 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 UAL 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 equivalent to those negotiated with other labor groups.
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... The market professionals also believed that the UAL story was just an attention grabber, with traders just trying to find a reason to sell ... Fifty percent believed that was the reason while 30 percent believed the news would reduce future takeovers ...
Famous quotes containing the word friday:
“Letting go ...implies generosity, a talent a good mother needs in abundance. Separation is not loss, it is not cutting yourself off from someone you love. It is giving freedom to the other person to be herself before she becomes resentful, stunted, and suffocated by being tied too close. Separation is not the end of love. It creates love.”
—Nancy Friday (20th century)