The Great San Francisco Earthquake happened on this day in 1906.  Shaking from this 7.8 magnitude monster was felt from Los Angeles to Oregon and as far east as central Nevada.  The financial implications were felt much further away.

The San Francisco Earthquake was one of the first major catastrophes to hit the insurance industry.  Total damage was in excess of $500 million... and we're talking 1906 value... around $11,833,495,458.68 when converted to today's dollars...that's a lot of cash.  About $180 million of that was insured. 

Large amounts of gold came into the United States as foreign insurers paid claims on their San Francisco policies out of home funds. This prompted the Bank of England to disfavor American finance bills and raise interest rates. These policies pushed the United States into a recession and ultimately contributed to the start of the Panic of 1907.

Check out more interesting info on the probability of earthquakes here.
Check out more on the Panic of 1907 here.