Subprime mortgage crisis/Timelines: Difference between revisions
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===September=== | ===September=== | ||
7 | 7 Fannie Mae and Freddie Mac are nationalised '''[http://www.foxbusiness.com/story/markets/government-seied-fannie-mae-freddie-mac/]. | ||
12 | 12 The ''Lehman Brothers'' [[investment bank]] becomes [[bankruptcy|bankrupt]] [http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] with losses of up to $160 billion to holders of its unsecured [[bond]]s. | ||
''''For further developments see [[crash of 2008]] [http://en.citizendium.org/wiki/Crash_of_2008/Timelines#June]'''' | ''''For further developments see [[crash of 2008]] [http://en.citizendium.org/wiki/Crash_of_2008/Timelines#June]'''' | ||
Revision as of 06:10, 10 March 2010
Sources
In addition to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in Fools Gold by Gillian Tett (see the bibliography subpage). Numbers shown thus {123} are the relevant page numbers in that book.
The 1980s
Financial deregulation [1], [2].
Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [3]
1990 - 2003
- Progressive discount rate cuts by Federal Reserve (from 7% in 1990 to 0.75% in 2003 [4].
- Housing boom begins (8% increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime mortgages [5]
2002
President sets target for expanding minority home-owning [6].
2003 - 2006
- Progressive discount rate increases (from 0.75% to 6.25% in 2006).
- Housing boom continues [7] (Average 2006 house price about 70% above 2000 level)
2007
June
25 Two of the Bear Stearns bank's hedge funds are threatened by losses from mortgage defaults [8].
August
6 American Home Mortgage becomes bankrupt [9].
9 French bank BNP Paribas freezes some of its funds because it is unable to value its US mortgage-backed assets. [10]
2008
January
Distress sale of US mortgage lender Countrywide to the Bank of America bank (after its share price had dropped by 48%). [11].
March
TheBear Stearns investment bank is rescued from bankruptcy following losses relating to mortgage-related assets by its hedge funds. [12]
April
The global subprime crisis costs could reach $1 trillion (IMF estimate) [13].
The IMF forecasts US recession and world growth slowdown [14].
June
US house prices 20% below 2006 peak [15].
August
Mortgage lenders Fannie Mae and Freddie Mac are rescued from bankruptcy [16].
September
7 Fannie Mae and Freddie Mac are nationalised [17].
12 The Lehman Brothers investment bank becomes bankrupt [18] with losses of up to $160 billion to holders of its unsecured bonds.
'For further developments see crash of 2008 [19]'