In 1720, the whole of England became embroiled in what has since become known as the South Sea Bubble, which brought the stock market to its knees.

But little is known of the fact two of the main protagonists in the downfall came from Carshalton.

Sir John Fellowes, who lived in Carshalton House – now St Philomena’s School – was a founding member of the South Sea Company, set up in 1711 to compete with the fledgling Bank of England.

In 1720, in return for a loan of £7m to finance the war against France, the House of Lords passed the South Sea Bill, which allowed the company a monopoly in trade with South America.

The company underwrote the English National Debt, which stood at £30m, on a promise of 5 per cent interest from the Government.

Shares soared and huge fortunes were made, but the bubble soon burst and people all over the country lost their money, with many becoming destitute.

The public demanded vengeance, and the South Sea Company directors were jailed and made bankrupt, their vast fortunes used to help their financial victims.

Now the story will be told in a Dodgy Bankers exhibition at Sutton Council’s Honeywood Museum in Carshalton.

The exhibition will also feature Sir William Scawen, of Carshalton Park, a founder of the Bank of England in 1694, which came to the country’s rescue and cemented its position as the UK’s leading banking institution.

Other eminent banking families, the Barings and Trittons of Beddington and the Antrobus family from Cheam, will also be included in the show.

Executive member for leisure on Sutton Council, Councillor Graham Tope, said: “You would think picturesque Carshalton had little in common with Wall Street or the square mile.

“This exhibition shows its former residents were at the epicentre of one of the world’s first banking meltdowns.

“And in light of last year’s credit crunch and the economic downturn, it will show how history sadly has a habit of repeating itself.”

The same venue will host a talk on the Gurneys of Carshalton – another failed banker – on September 30.

A tour of two estates, around Carshalton Park and Carshalton House, will take place on Saturday, September 19, starting outside the water tower on West Street at 10.30am.

For details call 020 8770 4297.