Bank failures and rescues/Timelines

A chronology of bank failures and rescues

Before WW1

United States

Bank runs occur in 1793, 1797, 1810, 1815, 1819, 1825, 1833, 1837, 1839, 1847, 1857, 1873, 1884, 1890, 1893, and 1907 [1] [2].

1914 Federal Reserve Bank created [3].

United Kingdom

1866 Overend-Gurney collapse causes banking panic [4]

1890 Barings crisis. Bank of England organises rescue of Barings bank by Rothschilds

The inter-war years

US bank failure statistics

Year	1925	1926	1927	1928	1929	1930	1931	1932	1933	1934	1935/40 average
Number of bank suspensions	618	976	669	488	659	1350	2293	1453	4000	57	40

(Source Federal Reserve Bank of St Louis [5].)

=1923

Norway: failure of Centralbanken for Norge.

1925

Spain: failure of Banco de la Union Miniere and Banco Vasca.

1926

Poland: runs on 3 major banks.

1927

Japan: runs on 32 banks.

1929

Austria: failure of Bodencreditanstalt. Germany: failure of Frankfurter Allgemeine Versicherungs AG.

1930

United States: failure of the Bank of America. France: failure of Banque Adam and the Oustric Group.

1931

United States: failure of over 1800 banks. Austria: failure of Creditanstalt Bank.

1932

Chicago banking panic

1933

US "banking holiday".

Federal Deposit Insurance Corporation Created [6].

1940 to 2007

( (S) denotes a crisis that is classed as systemic on the World Bank database of banking crises [7])

The 1970s

1974 German Herstatt bank failure

UK Secondary banking crisis.

1977 Banking crises in Israel (S) and Spain (S).

The 1980s

US Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [8]

1981 Mexican banking crisis (S) [9].

1982 Banking crises in Singapore (S) and Turkey (S).

1984 80 US bank failures

US Continental Illinois bank rescue [10] [11]. The "too big to fail" doctrine [12].

UK Johnson Matthey bank failure.

1985 120 US bank failures.

1987 Danish banking crisis.

1988 Norwegian banking crisis starts [13].

The 1990s

The decade:

Failure of a further 451 US "Savings and Loans" mortgage lenders.

1990 Bank of New England failure [14].

Banking crises in China (S) and Italy (S).

1991 Banking crises in Germany, Finland (S) and Japan (S).

UK Bank of Credit and Commerce International failure [15].

1994 Banking crises in Australia (S) , France, Brazil (S) and Mexico (S).

Japanese credit cooperatives Tokyo Kyowa and Anzen fail.

1995 UK Barings bank failure [16].

1996 Jamaican banking crisis (S).

1997 The beginning of the Asian banking crisis (S) [17].

1998 US Long Term Capital Management hedge fund rescue [18]

Early 2000s

2001 Argentinian banking crisis (S).

2007

The year 2007

The bursting of the United States housing bubble and the development there of the subprime mortgages crisis.

June

25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [19].

August

2 German IKB bank rescue [20]

6 American Home Mortgage bankrupt [21].

9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [22]

September

UK Northern Rock bank run [23]

2008

January

US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [24].

February

Northern Rock bank nationalised[25].

March

Bear Stearns rescued [26]

August

Fannie Mae and Freddie Mac rescued [27].

September

7 Fannie Mae and Freddie Mac nationalised [28].

12 Lehman Brothers bankrupt [29] with losses of $365 billion to insurers of its bonds.

15 Merrill Lynch sold to Bank of America after major capital write-downs [30].

17 American Insurance Group nationalised [31].

UK's Halifax/Bank of Scotland (HBOS) accepts rescue bid from Lloyds TSB [32].

18 Paulson Rescue plan proposed (US Treasury scheme to take "toxic assets" out of the US banking system) [33]

23 Federal Reserve Bank protects Goldman Sachs and Morgan Stanley banks[34].

26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [35].

28 UK bank Bradford and Bingley nationalised [36].

Multiple European bank rescues [37].

30 Icelandic Glitnir bank nationalised [38].

October

3 Modified Paulson Plan (to purchase toxic assets) approved by Congress [39].

Dutch Fortis and ABN Amro banks nationalised [40].

German Hypo Real Estate bank rescued [41]

Icelandic economic crisis [42].

6 US Wachovia Corp rescued [43].

8 UK rescue plan (to inject capital, take equity in banks and guarantee interbank lending) [44] [45].

10 G7 Action Plan agreed in general terms by finance ministers [46].

12 EU leaders adopt UK rescue plan'  :[47].

13 UK government to take equity in Royal Bank of Scotland, Lloyds TSB and Halifax/Bank of Scotland [48][49].

14 President Bush announces new plans (to inject capital, take equity in banks and guarantee interbank lending) [50].

US government to take equity in Bank of America, J P Morgan Chase, Citigroup, Morgan Stanley, & Goldman Sachs.

16 UBS rescue by £30 bn from Swiss government [51].

23 Federal Reserve Bank provides $540 billion support for money market funds.

German bank BayernLLB seeks $7 billion aid

French government provides $14 billion aid to BNP Paribas, Credit Agricole and 4 other banks.

Swedish government announces $200 billion rescue proposal.

Dutch ING bank gets $13 billion government lifeline.

November

23 US Federal Reserve Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [52].

US government makes $20 billion cash injection into Citigroup bank and guarantees against loss on $306 billion of iliquid assets [53] [54] [55][56]