Arendal crash

The Arendal crash (Arendalskrakket) was an economic crisis in Arendal, Norway, that occurred when the bank Arendals Privatbank went bankrupt in 1886 and the bank's co-owner Axel Nicolai Herlofson was revealed to have defrauded customers and co-owners systemically. The crash led to several other bankruptcies and unemployment in Southern Norway, and marked the end of Arendal as an important shipping town. It took over 80 years to overcome the effects of the crash. Herlofson was sentenced to six years penal labour.