General union

the General union is a Banque French Catholique founded in 1878 per Eugene Bontoux. It went bankrupt in a resounding way in 1882.

History

In 1878, Eugene Bontoux, a catholic banker and Legitimist which has just been laid off Banque Rothschild, proclaims his intention to raise, vis-a-vis the financial institutions of Jewish origin, a rival company which would consist of catholic capital and founds the General union. He becomes chairman of the board with Mr. Feder as director. The bank meets a great success in the catholic mediums. The secretary of the pope, the Jacobini cardinal, engages thus with the capital of the bank.

She believes extremely quickly, by multiplying the risky repurchases and investments: She acquires insurance companies, creates the Lyons Company of water and lighting or finance of the operations in North Africa and Egypt with other banks while speculating for the purse.

The growth continues until January 1882 when the company crumbles. It is the crash of the General union. It is about the first large puff financial history. In 1882, resulting at the same time from an over-capitalization of the values (the Stock Exchange counted more values than it could not receive some), of a bad financial management (repurchase by the company of its own actions…) and of a baited fight enters bears (in particular, Rothschild) and bulls , mixing political, religion and finances, the General union crumbles. It involves with it the bankruptcy of many stockbrokers close Lyon Stock Exchange then is reflected with crash on the Bourse de Paris. In January 1882, Bontoux is stopped and spends several months in prison.

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