In 1931, the Creditanstalt bank in Vienna collapsed, causing a financial panic across Europe.
It also had the status of correspondent with the Rothschilds of Paris and London, Samuel Montague& Company bankers of London and Osterreichische Creditanstalt And Banque Russe pour le Commerce Etranger in Paris.
Under the Hoover Moratorium of June 1931 issued by the American president Herbert Hoover, which was designed to deal with the world-wide financial crisis caused by the bankruptcy of the Creditanstalt in May 1931, Germany ceased paying reparations.