Arendal crash Arendal crash 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 .Literature Johannes G. Torstveit: Storsvindel bankkrakk og nytt politisk parti 1886-88, Arendal 1886-1888 , Arendals Tidende , 2012 Axel Smith: Av en ældre Arendalsmands erindringer fra de sidste 50 aar . I Arendal fra fortid til nutid . Utgitt ved byens 200-års jubileum som kjøpestad 7. mai 1923
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