The stakes rose higher for Wall Street when silver fell below $11 an ounce on March 27, 1980 -- Silver Thursday. At that time, the brothers had $1.75 billion in silver-related obligations besides the margin call loans, the SEC report said.
$130 Million
“For six days late in March 1980 it appeared to government officials, Wall Street and the public at large that a default by a single family on its obligations in the plummeting silver market might seriously disrupt the U.S. financial system,” the commission wrote.
The bursting of the silver bubble led to a series of lawsuits against the Hunts. In 1988, a federal court decided Bunker, Herbert and Lamar had attempted to illegally corner the silver market, and were ordered to pay $130 million restitution. A few weeks later, Herbert and Bunker filed for bankruptcy to protect themselves against creditors.
The trust that held their oil companies was protected from creditors and not subject to bankruptcy, leaving the brothers with companies valued at more than $150 million each at the time.
There is no dabbling in silver anymore for Herbert Hunt, who runs Petro-Hunt along with his children.
“Our big effort is oil and based in the Bakken,” Hunt said.