6. The Amsterdam crisis began when a Dutch group known as the Seppenwolde syndicate made a big, contrarian bet on the shares of East India Company. Those shares had plunged in 1771 mainly because of losses in Bengal, but the company kept paying high dividends and covered up its shortfalls by borrowing money. Convinced that East India shares would quickly rebound, the Seppenwolde group aggressively bought them on margin. But instead of rebounding, the shares fell even further after the company slashed its dividend.