1990 Economy & Business Events — Verified Historical Highlights
1990 Economy & Business Events — Verified Historical Highlights | TakeMeBack.to
- 01 Jan MTA subway fare increased to $1.15 in 1990: On January 1, 1990, the Metropolitan Transportation Authority (MTA) raised the subway and bus fare from $1.00 to $1.15, marking the first fare hike since 1986. This increase was part of a series of fare adjustments during the late 1980s and early 1990s, reflecting the MTA's efforts to address financial challenges and maintain service quality. source: nbcnewyork.com
- 02 Jan First McDonald's in Mainland China opens in Shenzhen: On October 8, 1990, McDonald's opened its first restaurant in mainland China in Shenzhen, a city bordering Hong Kong. The 500-seat restaurant was located in a shopping mall and attracted hundreds of eager customers on its opening day. source: upi.com
- 06 Jan New York Lotto records $35 million jackpot on January 6, 1990: On January 6, 1990, the New York Lotto announced a record-breaking $35 million jackpot, the largest individual payout at the time. The winning numbers were 18, 25, 26, 32, 42, 44, with a supplemental number of 11. The sole winning ticket was sold in Westchester County, New York. The winner was set to receive $1,666,666 annually for 21 years before taxes. source: upi.com
- 31 Jan First McDonald's opens in Soviet Union: On January 31, 1990, McDonald's opened its first restaurant in Moscow's Pushkin Square, marking the company's entry into the Soviet market. The event attracted approximately 38,000 customers, setting a company record for opening-day sales. This milestone was seen as a symbol of the Soviet Union's gradual shift towards Western capitalism during the period of perestroika. source: washingtonpost.com
- 12 Feb Drexel Burnham Lambert files for Chapter 11 bankruptcy protection: On February 13, 1990, Drexel Burnham Lambert Group Inc. filed for Chapter 11 bankruptcy protection after defaulting on approximately $100 million in loans. The firm, a pioneer in high-yield 'junk' bonds, faced severe liquidity issues due to a downturn in the junk bond market and legal challenges, including a guilty plea by executive Michael Milken to six felony counts. This filing marked the largest bankruptcy in Wall Street history at that time. source: latimes.com
- 03 Mar Gérard Blitz, founder of Club Méditerranée, dies at 77: Gérard Blitz, the Belgian entrepreneur and founder of Club Méditerranée, passed away on March 3, 1990, in Paris at the age of 77. Born in Antwerp on February 28, 1912, Blitz was a water polo player and Yogi who established the first all-inclusive resort, revolutionizing the vacation industry. He was also a promoter of yoga practice and served as secretary and president of the European Union of Yoga from 1974 until his death. source: jewsinsports.org
- 04 Apr Ivan Boesky released from prison after serving two years: On April 4, 1990, financier Ivan Boesky was released from a Brooklyn halfway house, concluding a three-year prison term for insider trading. Boesky, once a prominent Wall Street figure, had cooperated with authorities, leading to significant insights into securities law violations. His release was granted for good behavior after serving approximately two years of his sentence. source: upi.com
- 09 Apr Don Mattingly signs record $19.3 million contract extension with Yankees: On April 9, 1990, New York Yankees first baseman Don Mattingly agreed to a five-year contract extension worth $19.3 million, making him the highest-paid player in baseball at that time. The deal included a $2 million signing bonus and a no-trade clause, ensuring Mattingly's presence with the Yankees through the 1995 season. source: washingtonpost.com
- 14 Apr Michael Milken pleads guilty to securities fraud: On April 24, 1990, financier Michael Milken pleaded guilty to six felony counts, including securities fraud and conspiracy, admitting to manipulating financial markets between 1984 and 1986. He agreed to pay $600 million in fines and restitution, marking one of the largest individual settlements in Wall Street history. source: washingtonpost.com
- 16 Apr New York State increases unemployment benefits to $260 per week: On April 16, 1990, New York State raised the maximum weekly unemployment benefit from $245 to $260. This increase was part of a series of planned hikes, with the benefit set to rise to $280 on April 15, 1991, and $300 on February 3, 1992. source: thefreelibrary.com
- 18 Apr Bankruptcy judge appoints trustee to manage Eastern Airlines: On April 18, 1990, U.S. Bankruptcy Judge Burton R. Lifland appointed Martin Shugrue as trustee to oversee Eastern Airlines' operations, replacing Texas Air Corp.'s control. This decision followed creditors' loss of confidence in Eastern's management due to mounting losses and unsuccessful restructuring efforts. source: washingtonpost.com
- 24 Apr East and West Germany agree on date for monetary union: On April 24, 1990, West German Chancellor Helmut Kohl and East German Premier Lothar de Maizière agreed to establish a currency, economic, and social union by July 1, 1990. This agreement aimed to integrate East Germany's economy with West Germany's, marking a significant step toward reunification. The treaty was signed on May 18, 1990, and came into effect on July 1, 1990, replacing the East German mark with the Deutsche Mark as East Germany's official currency. source: washingtonpost.com
- 02 May East German mark exchange rate adjusted to 2:1 against Deutsche Mark: On May 2, 1990, West German and East German officials announced that banks would begin trading the East German mark at a 2:1 exchange rate with the Deutsche Mark, improving its value from the previous 3:1 rate. This move was a significant step toward monetary parity and German reunification, with plans for the two currencies to achieve equal value by July 1, 1990. Under the agreement, East German wages, salaries, rents, pensions, and scholarships would be converted to Deutsche Marks at a 1:1 rate starting in July. source: upi.com
- 08 May Cuyahoga County voters approve sin tax for sports facilities: On May 8, 1990, Cuyahoga County voters approved a 15-year sin tax to fund the construction of a $344 million stadium-arena complex, including a 45,000-seat baseball stadium and a 20,000-seat arena. The tax imposed additional charges on cigarettes and alcohol, with the measure passing by a margin of 52% to 48%. This decision facilitated the relocation of the Cleveland Indians and Cavaliers to new downtown venues. source: upi.com
- 14 May Dow Jones Industrial Average reaches record high on May 14, 1990: On May 14, 1990, the Dow Jones Industrial Average closed at a record high of 2,821.53, surpassing its previous record of 2,810.15 set on January 2, 1990. The day's trading saw the index rise by 19.95 points, with an intraday high of 2,822.95. This milestone was achieved amid strong investor enthusiasm and favorable economic indicators, including a decline in April producer prices, which bolstered confidence in the market. source: latimes.com
- 15 May Dow Jones reaches record high of 2,822.45: On May 15, 1990, the Dow Jones Industrial Average closed at a record high of 2,822.45, surpassing the previous record of 2,821.53 set on May 14, 1990. This surge was driven by investor optimism and expectations of lower interest rates. source: latimes.com
- 17 May Dow Jones Industrial Average reaches record high of 2,831.71: On May 17, 1990, the Dow Jones Industrial Average closed at a record high of 2,831.71, surpassing the previous record of 2,822.45 set on May 15, 1990. This milestone was part of a series of record closes in May 1990, reflecting strong investor confidence during that period. source: en.wikipedia.org
- 21 May European Bank for Reconstruction and Development established: The European Bank for Reconstruction and Development (EBRD) was established in 1991 to support the transition of former communist countries in Central and Eastern Europe to market economies. It provides project financing for banks, industries, and businesses in the private sector, and works to improve municipal services, promote entrepreneurship, develop stronger financial institutions and legal systems, and restructure and privatize state-owned businesses. source: britannica.com
- 22 May Dow Jones Industrial Average reaches record high of 2,852.23: On May 22, 1990, the Dow Jones Industrial Average closed at a record high of 2,852.23, surpassing previous records set earlier that year. This milestone was part of a series of record highs achieved in May 1990, reflecting strong market performance during that period. source: latimes.com
- 23 May U.S. Treasury Secretary Nicholas F. Brady estimates S&L bailout cost at $90–130 billion: On May 23, 1990, Treasury Secretary Nicholas F. Brady informed Congress that the government would need to borrow between $90 billion and $130 billion to resolve the savings and loan crisis, a significant increase from the previous estimate of $50 billion. This revision was attributed to a weaker economy and declining real estate prices, which were expected to lead to the failure of between 722 and 1,030 institutions. source: latimes.com
- 29 May Dow Jones Industrial Average reaches record high of 2,870.49: On May 29, 1990, the Dow Jones Industrial Average closed at a record 2,870.49, surpassing its previous high of 2,856.26 set on May 23, 1990. This surge was driven by a rebound in technology stocks and light trading volumes, indicating a post-holiday market recovery. source: latimes.com
- 30 May Dow Jones reaches record high of 2,878.56: On May 30, 1990, the Dow Jones Industrial Average closed at a record 2,878.56, marking a significant milestone in the stock market's performance during that period. source: latimes.com
- 01 Jun Dow Jones Industrial Average reaches record high of 2,900.97: On June 1, 1990, the Dow Jones Industrial Average closed at 2,900.97, marking a new record high at that time. This milestone was part of a series of record closes in 1990, reflecting investor confidence and positive economic indicators. source: islandnet.com
- 04 Jun Greyhound Lines files for Chapter 11 bankruptcy protection: On June 4, 1990, Greyhound Lines Inc., the nation's largest intercity bus service, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas in Brownsville. This move aimed to protect its assets and continue operations amid a prolonged strike by approximately 9,300 employees, including 6,000 drivers represented by the Amalgamated Transit Union, which began on March 2, 1990, over a new contract dispute. The strike had significantly impacted the company's financial stability, leading to the bankruptcy filing. source: washingtonpost.com
- 10 Jun Burger King begins using Newman's Own Salad Dressing: On June 10, 1990, Burger King began offering Newman's Own salad dressings in its salad section, marking a significant partnership between the fast-food chain and the philanthropic brand. This collaboration led to a notable increase in salad dressing sales, with Burger King reporting a doubling of sales in July 1990. source: encyclopedia.com
- 26 Jun President Bush acknowledges need for tax revenue increases to address budget deficit: On June 26, 1990, President George H.W. Bush stated that 'tax revenue increases' are necessary to control the growing federal budget deficit, effectively breaking his 1988 campaign pledge of 'no new taxes.' This decision marked a significant policy shift and faced criticism from conservative factions within his party. source: washingtonpost.com
- 27 Jun Merrill Lynch initiates $2.25 billion Disney bond issue: On June 27, 1990, Merrill Lynch began selling up to $2.25 billion in convertible bonds for the Walt Disney Company, marking the largest such issue in U.S. history at that time. The funds were intended to finance the construction of Euro Disneyland in France. source: kpolsson.com
- 30 Jun East and West Germany merge economies: On June 30, 1990, East and West Germany merged their economies, marking a significant step toward reunification. This integration involved replacing the East German mark with the Deutsche Mark as East Germany's official currency, effective July 1, 1990. The process was initiated by the Treaty Establishing a Monetary, Economic and Social Union, signed on May 18, 1990, and was a precursor to the full political reunification of Germany on October 3, 1990. source: britannica.com
- 01 Jul German monetary union: Deutsche Mark becomes official currency in East Germany: On July 1, 1990, the Treaty Establishing a Monetary, Economic and Social Union took effect, making the Deutsche Mark the sole legal tender in East Germany. This currency merger was a significant step toward German reunification, allowing East Germans to exchange their East German marks for Deutsche Marks at a 1:1 rate for wages, rents, and pensions, and at a 2:1 rate for larger savings. The Bundesbank facilitated the distribution of approximately 440 million banknotes and 102 million coins into East Germany to support this transition. source: washingtonpost.com
- 17 Jul Saddam Hussein accuses Kuwait of oil overproduction and theft from Rumaila field: On July 17, 1990, Iraqi President Saddam Hussein accused Kuwait of exceeding its OPEC oil production quotas and illicitly extracting oil from the Rumaila field, which straddles the Iraq-Kuwait border. Hussein claimed that Kuwait's actions led to a significant drop in global oil prices, costing Iraq approximately $14 billion in revenue. These accusations intensified tensions between the two nations, contributing to the lead-up to the Gulf War. source: washingtonpost.com
- 28 Jul Chicago power outage due to substation fire: On July 28, 1990, a fire in a 12,000-volt coal-burning transformer at a Commonwealth Edison substation caused a significant power outage in Chicago's West Side, affecting approximately 40,000 customers. The blackout led to looting and a tragic incident where three people died in a fire started by candles used during the outage. Power was restored to most customers by July 31, 1990. source: upi.com
- 30 Jul First Saturn Automobile Produced: On July 30, 1990, the first Saturn automobile, a red 1991 model-year SL2, was produced at the Spring Hill, Tennessee manufacturing plant. This marked the beginning of Saturn Corporation's operations as a subsidiary of General Motors, aiming to compete with Japanese imports in the compact car market. source: en.wikipedia.org
- 02 Aug Peru's economic crisis and hyperinflation in 1990: In 1990, Peru faced a severe economic crisis marked by hyperinflation, with inflation rates reaching 7,649% by the end of the year. The crisis was characterized by a significant contraction in GDP, rising unemployment, and widespread poverty. In response, President Alberto Fujimori implemented the "Fujishock" economic stabilization plan in August 1990, which included measures such as currency devaluation, subsidy cuts, and market liberalization to address the crisis. source: sjsu.edu
- 15 Sep Florida Lotto reaches $106.5 million jackpot: On September 15, 1990, the Florida Lotto jackpot reached a record $106.5 million, marking the largest lottery prize in the state's history at that time. Six winners shared the prize, each receiving approximately $17.75 million. This milestone drew significant attention, with ticket sales surging as players rushed to purchase tickets for the drawing. source: upi.com
- 16 Sep China-Kazakhstan railway link completed at Dostyk: On September 16, 1990, the railway between China and Kazakhstan was completed at Dostyk, connecting the two countries' rail networks. This link established a direct route between Almaty, then the capital of Kazakhstan, and Ürümqi in China, facilitating freight and passenger transportation. The completion of this railway was a significant milestone in the development of the Eurasian Land Bridge. source: ejrcf.or.jp
- 17 Sep Newspaper Guild votes to accept New York Post's offer: On September 17, 1990, the Newspaper Guild, representing 352 employees at the New York Post, voted 242 to 45 to accept a 20% pay cut and the loss of up to 43 Guild-covered jobs. This decision was crucial in preventing the closure of the 189-year-old newspaper, which was facing significant financial losses under owner Peter S. Kalikow. The Guild's acceptance allowed the Post to continue publication and avoid immediate shutdown. source: washingtonpost.com
- 21 Sep Oil prices surge amid geopolitical tensions: On September 21, 1990, crude oil prices reached new highs due to escalating geopolitical tensions. Reports indicated that U.S. refinery issues would lead to a 200,000-barrel-per-day loss in capacity, and aggressive remarks by Iraqi President Saddam Hussein further intensified market concerns. These factors combined to drive oil prices upward. source: en.wikipedia.org
- 24 Sep Soviet Parliament grants Gorbachev new economic powers: On September 24, 1990, the Soviet Parliament granted President Mikhail Gorbachev new powers to manage the economy, including authority over property relations, wages, prices, and the financial system. This decision aimed to facilitate the transition from central planning to a market economy. The resolution was passed with 305 votes in favor, 36 against, and 41 abstentions, and was later upgraded into law with 277 votes in favor, 41 against, and 52 abstentions. source: washingtonpost.com
- 11 Oct Crude oil prices reach record high amid Gulf tensions: On October 11, 1990, crude oil prices reached unprecedented levels due to escalating tensions in the Persian Gulf following Iraq's invasion of Kuwait. West Texas Intermediate (WTI) crude for November delivery closed at $40.40 per barrel on the New York Mercantile Exchange, surpassing the previous record of $40.10 set on September 27, 1990. This surge was driven by fears of supply disruptions and potential military conflict in the region. source: upi.com
- 12 Oct Economic impact of the Persian Gulf crisis: The Persian Gulf crisis, initiated by Iraq's invasion of Kuwait on August 2, 1990, led to a significant surge in global oil prices, rising from $15 per barrel in July to $33 in October. This sharp increase adversely affected the world economy, reducing global output growth by 0.3% in 1990. The crisis also resulted in substantial economic hardships for many countries, with millions of people being driven into poverty due to the rise in oil prices and other related consequences. source: upi.com
- 27 Oct Canadian Lottery Jackpot Shared: In a remarkable lottery event, 18 individuals shared the Canadian Lotto 6/49 jackpot worth CDN$19.8 million, marking a notable moment in Canadian lottery history.
- 19 Nov Disney's Beach Club Resort Opens: Disney expanded its Walt Disney World resort in Florida by opening the Beach Club Resort, adding another themed hotel to its growing entertainment complex.
- 03 Dec Pakistan establishes National Highway Authority: On December 3, 1990, Pakistan established the National Highway Authority (NHA) to oversee the development and maintenance of the national highway system. This initiative aimed to improve transportation infrastructure across the country. source: nha.gov.pk
- 04 Dec Trade Talks Collapse in Brussels: International trade negotiations in Brussels break down due to a dispute between the United States and the European Union over farm export subsidies, highlighting ongoing economic tensions.
- 20 Dec Sports Business Transaction: Entrepreneur Robert F.X. Sillerman completes the purchase of the WAFL New York-New Jersey Knights professional sports franchise for $11 million, signaling continued investment in sports entertainment.
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