The origin of the term bankruptcy

This basically dates back to 14th century Italy, when bankers did business and trade on a large bench. They called it a bench, but it looked more like a large table.

But for all intents and purposes, they'll sit on this bench. They have tables, and in Italy they basically sit on benches around tables. You can imagine places like Venice, where all these bankers sit in the yard and they do their banking business on this bench.

If the bankers are insolvent and they are unable to continue borrowing or making payments, then publicly state and leave in shame to let people know that he is insolvent and is unable to continue and be out of the game. That person left a half-bench is a public sign of bankruptcy.

The Italian phrase at the time was bancar rta. It meant a bad bench. It meant bankruptcy. This is where our word bankruptcy comes from.

Excerpt from Feb5 2023 Investor Amnesia Jamie Catherwood