Timeline Monday 19 October 1987

Events on Monday 19 October 1987 1

• 1987 Black Monday — first crisis, decisive response On 19 October 1987 — Black Monday — the Dow Jones Industrial Average falls 22.6% in a single day, the largest one-day percentage decline in stock market history. Greenspan, in office for just two months, responds the following morning with a one-sentence statement: 'The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system.' The statement prevents a bank run. Markets stabilise within days. Greenspan's calm, decisive response establishes his authority immediately.