Crash of 2008/Timelines
For definitions of the terms shown in italics, see the related articles subpage of the main article.
The 1980s
Financial deregulation In the USA [1], [2], the UK [3] and elsewhere [4].
Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [5]
1987 stock market crash [6].
Basel I recommended banking regulations published [7].
The 1990s
The decade:
- Credit risk banking crises in Switzerland, United Kingdom, Norway, Sweden, Japan and the US [8].
- Failure of a further 451 US "Savings and Loans" mortgage lenders.
1997-8 Asian banking crisis [9].
1998 LTCM rescue [10]
1999 Savings and Loans rescue costs to US taxpayers reach $129 billion [11].
2000-2006
US mortgage growth Annual issue of mortgage-backed bonds up from ~ $500 billion to over $2,000 billion [12]
US housing boom Average price rises 80% [13] .
US mortgage foreclosures increase [14].
The year 2007 (summary)
US house prices fall throughout 2007 (fall 8% below 2006 peak) [15].
Further increases in US Mortgage defaults and foreclosures [16].
Large bank writedowns and losses at Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Citigroup and HSBC.
2007
June
25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [17].
August
2 German IKB bank rescue [18]
6 American Home Mortgage bankrupt [19].
9 French bank BNP Paribas freezes funds because it is unable to value its US mortgage-backed assets [20]
-Credit Crunch begins with the collapse of interbank market [21].
September
UK Northern Rock bank run [22]
2008
January
Basel II banking regulation recommendations take effect [23]
US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [24].
February
British government nationalises Northern Rock bank [25].
March
Bear Stearns rescue [26]
April
Global subprime crisis costs could reach $1 trillion (IMF estimate) [27].
June
US house prices 20% below 2006 peak [28].
August
Fannie Mae and Freddie Mac rescued [29].
September
7 Fannie Mae and Freddie Mac nationalised [30].
12 Lehman Brothers are bankrupt[31] with losses of $160 billion to holders of its unsecured bonds.
16 US money market's Reserve Primary Fund writes off $785m Lehman holding and its investors suffer asset value loss [32].
- Money market panic [33].
17 US government nationalises American Insurance Group [34].
- UK's Halifax/Bank of Scotland (HBOS) accepts rescue bid from Lloyds TSB [35].
18 Paulson Rescue plan proposed (US Treasury scheme to take "toxic assets" out of the US banking system) [36]
- UK temporary ban on short selling [37].
23 US Federal Reserve Bank protects Goldman Sachs and Morgan Stanley banks[38].
25 The President's warning: "major sectors of America’s financial system are at risk of shutting down” leading to "long and painful recession" [39].
26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [40].
- Central Banks offer extra loans to banks. Coordinated action by US, UK, European and Swiss central banks [41].
28 UK bank Bradford and Bingley nationalised [42].
- European bank rescues [43].
October
3 Modified Treasury Paulson Rescue plan approved by Congress [44].