Work

The first bear raid and squeeze: Isaac Le Maire and the Dutch East India Company

Year: 2026

Type: article

Abstract: In 1609, the Dutch East India Company (VOC) faced a bear raid by a syndicate of short sellers led by Isaac Le Maire, a former director. We reconstruct the forward trade between 1607 and 1611, the actions taken by the syndicate members, and the responses to these actions by the company. We argue that the bear syndicate members aimed for financial gain from share price declines, while their leader, Le Maire, participated for strategic reasons, that is, breaking up the VOC monopoly. We also show that the government refused to intervene at that time. The raid ended with a squeeze executed by an opposing syndicate, bankrupting several forward traders and blocking Le Maire's plans. We characterize the bear raid and squeeze as a crucial episode in the more general tug‐of‐war between company directors aiming to turn the VOC into an instrument of the state and a diverse group of opposing investors.

Source: The Economic History Review

DOI: 10.1111/ehr.70142

Authors: Oscar Gelderblom, Abe de Jong, Joost Jonker

Institutions: University of Antwerp, University of Groningen, Monash University, University of Amsterdam

Language: English

Topic: Historical Economic and Social Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,900