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 $2,00 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]

June

US house prices 20% below 2006 peak [27].

July

US Housing and Economic Recovery Act [28].

August

IMF estimates global bank losses to be about $1,000 billion [29]

US Government's Fannie Mae and Freddie Mac rescue [30].

September

7 Fannie Mae and Freddie Mac nationalised [31].

12 Lehman Brothers seek bankruptcy protection [32]

15 US Federal Reserve Bank rescues Bear Stearns bank [33].

16 US money market's Reserve Primary Fund writes off $785m Lehman holding and investors suffer asset value loss [34].

17 US government nationalises American Insurance Group [35].

Russian stockmarket meltdown [36]

UK's Halifax/Bank of Scotland (HBOS) accepts rescue bid from Lloyds TSB [37].

18 TARP rescue plan proposed (US Treasury scheme to take "toxic assets" out of the US banking system) [38]

UK temporary ban on short selling [39].

23 US Federal Reserve Bank protects Goldman Sachs and Morgan Stanley banks[40].

FBI to investigate possibility of fraud at Fannie Mae, Freddie Mac, Lehman Bros and AIG [41].

25 The President's warning: "major sectors of America’s financial system are at risk of shutting down” leading to "long and painful recession" [42].

26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [43].

Central Banks offer extra loans to banks. Coordinated action by US, UK, European and Swiss central banks [44].

28 Congressional leaders agree TARP terms [45].

UK bank Bradford and Bingley nationalised [46].

29 TARP rescue plan rejected by House of Representatives [47]

Wall Street share index falls by 7 per cent [48].

European bank rescues [49].

October

3 Modified TARP rescue plan approved by Congress [50].