# Largest company to ever fail? **URL:** \ **Category:** Factual Questions\ **Created:** [September 23, 2010, 4:27am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742 "2010-09-23T04:27:46Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![TNWPsycho](https://avatars.discourse-cdn.com/v4/letter/t/47e85d/32.png) [@TNWPsycho](https://boards.straightdope.com/u/TNWPsycho)\ **Post date:** [September 23, 2010, 4:27am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/1 "2010-09-23T04:27:46Z")
I’m wondering, what is the largest company to ever fail? Circuit City–market cap around $20b Washington Mutual? ---
**Author:** ![yabob](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yabob/32/2821_2.png) [@yabob](https://boards.straightdope.com/u/yabob)\ **Post date:** [September 23, 2010, 4:37am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/2 "2010-09-23T04:37:43Z")
Lehman Brothers, $600 billion in assets, is currently being called the largest bankruptcy in US history. I’m not sure it would be if we adjusted for size relative to the overall economy at time of failure. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [September 23, 2010, 4:57am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/3 "2010-09-23T04:57:59Z")
Is the British East India Company still around? If not, then they must have failed at some point or another. ---
**Author:** ![Derleth](https://avatars.discourse-cdn.com/v4/letter/d/b9e5f3/32.png) [@Derleth](https://boards.straightdope.com/u/Derleth)\ **Post date:** [September 23, 2010, 5:01am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/4 "2010-09-23T05:01:32Z")
The Dutch East India Company, which owned parts of the world until it was broken up, hopelessly corrupt and nearly bankrupt, in 1799. [In brief, broad strokes:](http://www.infoplease.com/ce6/history/A0816597.html) > [@](#): > > From its headquarters at Batavia (founded 1619) the company subdued local rulers, drove the British and Portuguese from Indonesia, Malaya, and Ceylon (Sri Lanka), and arrogated to itself the fabulous trade of the Spice Islands. In short, the VOC was the [UAC](http://en.wikipedia.org/wiki/Union_Aerospace_Corporation) and [Weyland-Yutani](http://en.wikipedia.org/wiki/Weyland-Yutani) of the real world. ---
**Author:** ![matt\_mcl](https://avatars.discourse-cdn.com/v4/letter/m/7ab992/32.png) [@matt\_mcl](https://boards.straightdope.com/u/matt_mcl)\ **Post date:** [September 23, 2010, 5:04am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/5 "2010-09-23T05:04:14Z")
> [@Chronos](#): > > Is the British East India Company still around? If not, then they must have failed at some point or another. Not really, not like the corporations previously mentioned; according to Wikipedia it was nationalized and later dissolved. ---
**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\ **Post date:** [September 23, 2010, 6:29am UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/6 "2010-09-23T06:29:48Z")
> [@matt\_mcl](#): > > > [@Chronos](#): > > > > Is the British East India Company still around? If not, then they must have failed at some point or another. > > Not really, not like the corporations previously mentioned; according to Wikipedia it was nationalized and later dissolved. And now it’s back: [http://www.theeastindiacompany.com/](http://www.theeastindiacompany.com/) ---
**Author:** ![hogarth](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hogarth/32/1773_2.png) [@hogarth](https://boards.straightdope.com/u/hogarth)\ **Post date:** [September 23, 2010, 1:15pm UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/7 "2010-09-23T13:15:05Z")
> [@yabob](#): > > Lehman Brothers, $600 billion in assets, is currently being called the largest bankruptcy in US history. I’m not sure it would be if we adjusted for size relative to the overall economy at time of failure. Assets under management has nothing to do with market capitalization. According to [this article](http://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp), their market cap peaked at about $60 billion. AIG would have been bigger, not to mention GM. ---
**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\ **Post date:** [September 23, 2010, 1:18pm UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/8 "2010-09-23T13:18:43Z")
When it reorganized in 1982, Johns-Manville was the largest corporate bankruptcy in American history, although I’m sure it now pales in comparison with Lehman Brothers. ---
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [September 23, 2010, 1:33pm UTC](https://boards.straightdope.com/t/largest-company-to-ever-fail/554742/9 "2010-09-23T13:33:44Z")
Here’s the list compiled by the WSJ: > **[The Biggest Bankruptcies in U.S. History](https://www.wsj.com/articles/BL-DLB-8562)** > > The long expected bankruptcy of Chrysler is upon us. For a brief period this week, it looked as though the Obama administration, Chrysler and the beleaguered auto maker's creditors would work out a deal. Alas, the talks fell apart. With that in mind,... Ranking by asset size is more appropriate than by previous equity or market cap, as any company that is filing for bankruptcy in theory has no equity…as its debts are greater than its assets.