Crash of 2008/Timelines

Before 1980

For earlier bank failures and rescues see the bank failures and rescues timelines [1]

The 1980s

• Financial deregulation In the USA [2], [3], the UK [4] and elsewhere [5].

• Savings and Loans crisis- Failure of 296 US "Savings and Loans" mortgage lenders [6]

• 19871987 stock market crash [7].

The 1990s

The decade

• 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

• 'Dot com' crash (2000)

• US mortgage (housing) 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]

-Collapse of interbank market [21].

September

UK Northern Rock bank run [22]

2008

January

US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [23].

February

Northern Rock bank nationalised[24].

March

Bear Stearns rescued [25]

April

Global subprime crisis costs could reach $1 trillion (IMF estimate) [26].

IMF forecasts US recession and world growth slowdown [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 bankrupt[31] with losses of $365 billion to insurers of its bonds.

15 Merrill Lynch sold to Bank of America after major capital write-downs [32].

16 US money market's Reserve Primary Fund write-off of $785m Lehman holding and its investors suffer asset value loss [33].

Money market panic [34].

17 American Insurance Group nationalised [35].

UK's Halifax/Bank of Scotland (HBOS) accepts rescue bid from Lloyds TSB [36].

18 Paulson Rescue plan proposed (US Treasury scheme to take "toxic assets" out of the US banking system) [37]

UK temporary ban on short selling [38].

19 Fed supports money markets Federal Reserve Bank ready to finance loans from the money market [39].

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

26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [41].

Coordinated support by US, UK, European and Swiss central banks [42].

28 UK bank Bradford and Bingley nationalised [43].

Multiple European bank rescues [44].

30 Icelandic Glitnir bank nationalised [45].

October

3 Modified $700 billion Paulson Plan (to purchase toxic assets) approved by Congress [46].

Dutch Fortis and ABN Amro banks nationalised [47].

German Hypo Real Estate bank rescued [48]

Icelandic economic crisis" [49].

6 US Wachovia Corp to be rescued by Wells Fargo takeover [50].

7 More European bank rescues [51].

UK credit insurer withdraws cover [52].

8 £500 billion UK rescue plan (the "Brown plan" to inject capital, take equity in banks and guarantee interbank lending) [53] [54].

Coordinated interest rate cut of half per cent by the central banks of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [55].

10 G7 Action Plan agreed by finance ministers (in a broadly worded statement, lacking in specifics) [56].

12 EU leaders adopt UK rescue plan (to inject capital, take equity in banks and guarantee interbank lending) [57].

14 President Bush announces new plans (to inject capital, take equity in banks and guarantee interbank lending) [58].

19 German bank rescue package agreed [59].

21 US Federal Reserve Bank offers $540 billion loan support to money market mutual funds [60].

25 Denmark's Roskilde bank to be taken over by its central bank [61].

28 Credit crunch starts to ease [62] [63].

Further rescues

For later bank failures and rescues see the bank failures and rescues timelines [64]