The Panic of 1873 was a financial crisis that began in the United States and quickly spread to Europe. It was triggered by the collapse of the investment bank Jay Cooke & Company, which had heavily invested in the railroad industry. As banks failed and credit tightened, businesses struggled, leading to widespread unemployment and economic downturn. The crisis marked the beginning of a severe economic depression that lasted for several years, known as the Long Depression. Many people lost their savings, and the stock market plummeted. The Panic of 1873 highlighted the vulnerabilities in the financial system and led to significant changes in banking regulations.