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FEB 5 Mortgage Lenders Network MAR 20 People’s Choice Home APR 3 New Century Financial, the JUL 6 In a surprise move, Peter AUG 7 American Home Mortgage, SEP 14 One of England’s largest OCT 1 Swiss bank UBS announces NOV 5 Citigroup CEO Chuck Prince DEC 3 Moody’s announces it JAN 8 Jimmy Cayne, the CEO of FEB 8 Deutsche Bank reports MAR 10 Rumors spread on APR 1 Deutsche Bank reveals that MAY 13 The Financial Times JUN 2 Wachovia’s CEO Kennedy JUL 8 An SEC report criticizes AUG 7–9 Citigroup pays a $100 SEP 7 The US government OCT 3 A revised bailout plan is NOV 4 Barack Obama is elected DEC 8 Despite a $27 billion loss in JAN 8 The Bank of England cuts its FEB 6 US unemployment figures MAR 2 AIG declares a fourth- APR 2 G20 leaders meet in MAY 4 A US Federal Reserve JUN 1 General Motors becomes JUL 1 To date, AIG has received AUG 4 Reports emerge that the SEP 1 Eurozone unemployment OCT 6 The Reserve Bank of NOV 4 The US Senate unanimously DEC 1 The unemployment rate JAN 4 Dubai names its tallest FEB 8 The DJIA closes below MAR 2 AIG agrees to sell its Asian APR 5 Jobless benefits temporarily MAY 1 A series of austerity JUN 1 The US national debt tops JUL 8 Fannie Mae and Freddie AUG 17 President Obama hosts SEP 2 The European Union OCT 1 The Irish government NOV 1 The Commerce Department DEC 3 Trustees for Madoff victims JAN 3 The Ohio school pension FEB 4 Bank of America revises MAR 7 The SEC charges former USA, the 15th largest subprime Loan files for bankruptcy. largest subprime lender in the US, Wuffli, the CEO of Swiss bank UBS, one of the largest retail mortgage retail mortgage lenders, Northern a $3.7 billion writedown followed resigns after an announcement that will further lower its ratings on Bear Stearns, resigns. Cayne has profits of $9.4 billion for 2007 and Wall Street that Bear Stearns it will write down $3.9 billion in the releases a writedowns table Thompson resigns in the wake of rating agencies for not properly million fine and UBS pays a $150 effectively takes control of signed into law as the Emergency 44th President of the United States. 2008, Merrill Lynch rushes through interest rate to 1.5% ­— the lowest reach 7.6%. quarter loss of $60 billion — the London to discuss the crisis. They survey reports that mortgage the largest manufacturing company nearly $175 billion in aid from the Goldman Sachs CEO reportedly told is reported at 9.5%, the highest Australia raises the main interest votes to extend unemployment in Europe is at 9.8% in October, a building Burj Kalifa, in a nod to the 10,000 amid growing fears about the life insurance business to British expire for approximately 200,000 measures is proposed in Greece, $13 trillion for the first time in the Mac are delisted from NYSE a conference to discuss strategy to Central Bank announces that announces it will inject an additional says the economy grew faster than sue JPMorgan Chase for $6.4 billion, fund sues Wells Fargo over losses its SEC financial filings for 2009 Goldman Sachs director Rajat Gupta lender in the US, files for bankruptcy. files for bankruptcy and defaults on resigns over declining profits due lenders, files for bankruptcy. Rock, seeks emergency liquidity by the resignation of the head of Citigroup may have to write down up some mortgage-related securities, personally lost over $900 million, seems to have dodged the worst of is experiencing severe liquidity first quarter. showing worldwide bank write-offs $708 million in subprime losses. managing conflicts of interest when million fine to settle allegations Fannie Mae and Freddie Mac, Economic Stabilization Act by In his victory speech, he states that payment of $3.7 billion in employee rate in 315 years. largest quarterly loss in US history. pledge $1.1 trillion to fight the demand rose in the first quarter in US history to file for Chapter 11 federal government, which now has employees not to make high-profile level in 10 years. The figure is later rate by 25 basis points to 3.25%, payments for the 1.3 million figure that is later revised to 9.9%. leader of neighboring Abu Dhabi European debt crisis. insurer Prudential for $35.5 billion Americans. which persuades Germany to sign on nation’s history. When compared Euronext. overhaul Fannie Mae and Freddie economic growth in the Eurozone $16 billion into its faltering banking expected, 2% in the second quarter. claiming the bank enabled his Ponzi in Wachovia’s securities-lending and 2010 due to unexpected losses and Galleon Group founder Raj $8.4 billion in loan repayments. to the bank’s activity in the US from the Bank of England. This is the its investment banking division. to $11 billion in bad debt primarily following concerns about rapid since he was heavily invested in the subprime crisis. problems. Investor anxieties become totaling almost $450 billion since assigning ratings to products such that they engaged in deceptive placing the companies under the President Bush, establishing the “if the financial crisis taught us bonuses just before the Bank of FEB 10 Secretary of the Treasury Total support to date from the US crisis, with an additional $750 for the first time since early 2007, bankruptcy protection. an 80% stake in the company. purchases until the backlash against revised to 9.8%. becoming the first major economy unemployed Americans who would Analysts expect this rate to peak at who oversaw the bailout in late to repay its bailout debt. The deal to a $110 billion bailout package. against the GDP, the debt amounts Mac by creating a comprehensive reached 1% in the second quarter system. scheme. program. WF acquired Wachovia in of $6.6 billion from consumer Rajaratnam with insider trading. FEB 13 ResMae Mortgage subprime market. AUG 9 BNP Paribas SA, France’s first major incident of the financial UBS was heavily involved with from subprime losses. deterioration in the US housing Bear Stearns stock. a self-fulfilling prophecy as the APR 7 The Concise Oxford English January 2007. JUN 16 Lehman Brothers reports as mortgage-backed securities, sales practices and misrepresented conservatorship of the Federal Troubled Asset Relief Program anything it is that we cannot have America takeover, and despite JAN 10 Unemployment in the Timothy Geithner speaks about government is $130 billion. billion for the International despite tightened standards for high Wall Street bonuses dies down. to raise rates in the wake of the otherwise lose their benefits by the 11% before turning around. 2009. FEB 12 Fourth-quarter Eurozone hits a regulatory roadblock and APR 10 Former Lehman CEO Dick The measures cause a backlash in to about 89.4% of the total US JUL 22 President Obama signs a reform proposal that protects alone. This is the fastest rate in four NOV 1 Lawsuits are filed against December 2008. credit cards and financial reform Corporation files for bankruptcy. APR 4 CNN Money reveals that biggest bank, freezes assets on three crisis in the UK. collateralized debt obligations market. Pools of lower-quality bonds FEB 13 Data from the Financial company’s stock price plunges over Dictionary announces it will include a $2.8 billion second-quarter loss, citing instances in some agencies auction-rate securities that Housing Finance Agency. (TARP). The bill gives the Treasury a thriving Wall Street while Main benefitting from taxpayer United States jumps to 7.2%, the the new administration’s plans to Monetary Fund, $250 billion for home loans by banks. JUN 3 Eurozone GDP experiences JUL 2 June unemployment is SEP 5 Fannie Mae and Freddie crisis—a move that came earlier end of the year. The Senate also GDP comes in at a disappointing is delayed, and eventually falls Fuld and other former executives Greece, resulting in several days of economy. bill to extend unemployment benefits taxpayers, instituting tough years and increased the annual GDP OCT 20 The Wall Street Journal JPMorgan Chase and HSBC DEC 6 US and South Korea agree legislation. MAR 7 HCA, the largest hospital subprime loans have five times JUL 17 Two Bear Stearns hedge investment funds that had capital of (CDOs) and credit default swaps, NOV 13 Bank of America says it were packaged and exported all over JAN 17 Lehman Brothers Services Agency, the Japanese the next few days. “subprime” and “credit crunch” in MAY 21 Moody’s Investors Service the first loss in the company’s 14- where senior analytical managers they sold to customers as liquid $700 billion to purchase subprime Street suffers.” TARP money. highest in 16 years. address the crisis in broad terms. MAR 6 The FDIC closes16000 the world trade financing, and $100 a 2.5% decline overall, partly released at 9.5%, considerably AUG 6 President Obama states Mac narrowly avoid being delisted than most analysts expected. includes tax credits for homebuyers DEC 9 Bank of America announces JAN 6 Following a downgrading 0.1%. through. are sued over their use of “Repo rioting. again. oversight, restoring the long-term to 1.9%, higher than the US or reports that Goldman Sachs is accusing the banks of manipulating on a free trade accord. JAN 3 A survey of global business group in the US, issues its third IPO, the delinquency rate of prime funds specializing in subprime debt €1.6 billion. The funds had declined SEP 21 Bear Stearns announces derivative products that lost value will have to write off $3 billion of the world. announces plans to eliminate financial watchdog, shows that losses its next edition. launches an external review after year history under public ownership. participated in fee discussions with and similar to cash. Citigroup SEP 11 Lehman Brothers loans from banks to improve their Freedom Bank of Georgia, making it billion for multilateral development MAY 7 Stress test results for the due to a 4% contraction in the higher than the 8% peak the that the worst of the economic crisis by the New York Stock Exchange as in the bill. that it has fully repaid the $45 of its credit rating by S&P, Moody’s 105” transactions, where repurchase JUN 1 AIG scuttles16000 a deal to sell health of the housing market and Japan’s second-quarter reports. looking to buy back a $5 billion silver futures. leaders by Grant Thorton finds FEB 6 The Kansas City Federal worth $3.5 billion. It operates 164 loans. A total of approximately disclose to investors that each fund almost 20% in two weeks, and the a 61% drop in earnings from the when the subprime crisis hit. subprime debt. 1,300 jobs in its domestic mortgage from the Japanese exposure to the MAR 16 JP Morgan Chase a media report states that a coding the issuers of securities. The SEC reimburses $7 billion to investors announces plans to downsize its capital-to-debt ratios. The aim is NOV 14 Freddie Mac asks the US DEC 10 Bernard Madoff, former JAN 20 Barack Obama is sworn FEB 10 The DJIA falls 382 points the 17th US bank to fail in 2009. The banks. They also make plans to 19 largest banks are released. The German economy. The downturn administration had hoped for when might be over,16000 following a report their share prices triple, putting them OCT 14 Buoyed by improved billion in TARP aid that it took at and Fitch in16000 December, Greece FEB 17 The Fed reports that MAR 2 Senator Jim Bunning bows agreements were misclassified MAY 6 An unexplained 1,000-point an Asian life insurance company for JUL 23 President Obama signs strengthening the nation’s economic investment from Warren Buffett’s DEC 13 President Obama and 78% optimistic in Latin America, Reserve president calls for properties. $1.3 trillion has been loaned to has lost at least 90% of its value. bank froze withdrawals because same quarter in 2006. Goldman DEC 6 President George W. Bush division, on top of 2,500 that have subprime crisis reached $5.6 billion announces that it will acquire error in a computer model may also proposes rules to reduce Wall and UBS $19 billion after reaching operations in view of investor to recapitalize the banks so that government for access to a $13.8 cost to the FDIC is $36.2 million. crack down on tax havens, regulate results are better than expected. is part of the worst recession in it created the recovery plan in that the unemployment rate in above the $1 per share minimum earnings reports, the DJIA closes NOV 7 AIG posts its second the height of the financial crisis. denies that it will need a bailout to pressure and stops blocking the as sales to reduce leverage on its drop in the DJIA causes chaos in the $35 billion, one of many subsidiaries recovery. SEP 15 Michael Barr, Treasury Berkshire Hathaway Inc. that 16000 50% optimistic in Europe and the breakup of large financial APR 17 Merrill Lynch reveals JUN 16 The SEC releases chairman of the NASDAQ stock in as the 44th President of the in response. US industrial output rose for a the Wall Street Regulation Bill, NOV 1 Two explosive packages are Congress agree to extend Bush- 16000 subprime borrowers, in a $6 trillion The funds only invested in securities they could not fairly value their Sachs reports a 79% rise in third OCT 9 The DJIA closes at its NOV 15 Barclays Bank in the UK announces a plan, which is never already been cut in the wake of the in 2007. Bear Stearns at $2 a share in first-quarter losses of $1.96 billion have resulted in higher than proposed rules for Nationally- Street’s reliance on credit ratings. an agreement with regulators. concerns about the firm’s viability. they are able to make loans again. billion lifeline after reporting a exchange, is arrested and faces United States. In his speech he hedge funds, toughen pay rules for Nine of the banks tested, including continental Europe since World War January. The rate of job losses has the US fell for the first time in 15 required. above 10,000 for the first time in a consecutive quarterly profit as to tackle its looming budget crisis seventh straight month and home stopgap measure, and the bill to balance sheet each quarter. markets, leading analysts to point it plans to sell to raise money to which is intended to make sweeping Assistant Secretary for Financial bolstered the company during the seized from cargo planes bound for era tax cuts for all income levels. about 40% optimistic in North companies, referring to them as MAR 18 Standard & Poor’s housing market. that rating agencies graded as assets due to the growing turmoil in quarter profits, beating analyst highest-ever level, ending the day at confirms a $1.6 billion writedown implemented, to help troubled subprime crisis. an arrangement brokered by the largely due to subprime lending, warranted ratings for certain Recognized Statistical Rating Critics point out that the SEC did not quarterly loss of $25.3 billion. lifelong imprisonment for operating states that “Our economy is badly FEB 13 Australia’s parliament MAR 9 The Icelandic Financial financial institutions and regulate JP Morgan Chase, Goldman Sachs II. However, the news is part of a slowed however, a possible early months in July. year, capping a seven-month surge in operations continue to stabilize DEC 10 The Bank of England and announces a series of measures construction hit a six-month peak in extend jobless benefits and other to Greece’s debt crisis as a possible repay its 2008 bailout loan. regulatory changes to the financial AUG 24 Using money it received Institutions, promises a drastic worst of the financial crisis. the US from Yemen. Estimated cost: $850 billion over America and the Asia Pacific “a threat to our capitalistic system.” downgrades Portugal’s debt after triple-A, high-quality investments. the subprime market. expectations. 14,164 points. due to subprime losses. homeowners facing foreclosure and FEB 17 Britain announces the Federal Reserve. The Fed finances compared to a profit of $2.1 billion European debt products. Organizations (NRSROs). The address the payment model, where AUG 13 Britain reveals a negative SEP 13 Major banks meet to OCT 4 Wells Fargo outbids what may be the largest fraud in weakened, a consequence of greed passes a $27.4 billion stimulus Supervisory Authority nationalizes credit rating agencies. and Capital One, are found to be set of mixed data which indicate the indicator of recovery. SEP 21 The Government stock prices. following the government bailout. leaves its interest rates unchanged aimed at cutting its budget deficit. January 2010. programs for one month is passed. APR 7 The SEC proposes new explanation. The “2010 Flash Crash” industry including the creation of from the sale of debt, AIG pays back overhaul for Freddie Mac and 10 years. region for 2011. an austerity deal collapsed and the freeze subprime interest rate loans JAN 22 The Federal Reserve nationalization of Northern Rock, the transaction and guarantees the the year before. proposed rules primarily address issuers of securities pay for the real interest rate after the Bank of devise a plan to buy Lehman Citigroup when it announces it NOV 17 The US Treasury gives out Wall Street’s history, reportedly and irresponsibility on the part of bill in the hopes of heading off a the last major Icelandic bank,15000 adequately capitalized. The most global economic slowdown may be AUG 6 The European Central Bank Accountability Office releases a at 1%, stating that “any policy rules to reduce undue reliance on was the biggest intra-day fall ever JUN 4 The DJIA dips below the Consumer Financial Protection the government $4 billion from Fannie Mae. Congress debates the OCT 26 Standard & Poor’s puts NOV 3 The Fed launches a second FEB 11 A bankruptcy judge rules prime minister resigned. Moody’s JUL 19 The DJIA closes above AUG 9 The European Central Bank OCT 11 RealtyTrac, which tracks NOV 16 The US House of for five years. cuts the discount interest rate which owed the Bank of England company’s outstanding obligations transparency, disclosure and assignment of ratings. England lowered rates in response Brothers. Bank of America is the will pay $15 billion to purchase $33.6 billion to 21 banks in the losing up to $65 billion in a giant some, but also our collective failure recession in that country. investment bank Staumur Burdaras. APR 2 The Financial Accounting troubled institutions include GMAC, coming to an end. JUL 15 Goldman Sachs announces keeps interest rates unchanged report stating that AIG has finally OCT 14 The New York Times NOV 13 Eurozone GDP shows a tightening looks a long way off” and JAN 6 Goldman Sachs CEO Lloyd FEB 24 Tensions rise as Germany, MAR 8 AIG sells its American Life credit ratings for certain bonds at 9.2%, and was likely due to a 10,000 due to renewed concerns Bureau. its bailout loan. AIG must repay restructuring of the two companies mortgage banks Wells Fargo Home round of “quantitative easing” DEC 13 The yield on 10-year JAN 5 US online purchases in the against Lehman Brothers’ creditors cuts its rating on Spanish banks. 14,000 for the first time in its history. injects €95 billion into the Eurozone foreclosures in the housing market, Representatives passes a predatory by 0.75% — the largest cut in £25 billion for loans given after a up to $30 billion. reporting requirements and ways to the credit crisis. The crisis in the leading contender for the takeover. Wachovia. second round of disbursements Ponzi scheme. to make hard choices.” Standards Board (FASB) announces Wells Fargo, Bank of America and profits of $3.44 billion in the second at 1%, stating that although the stabilized, following a $182 billion reports that 7,500 Americans have 0.4% expansion in the third quarter, that it expects recovery to be “slow Blankfein receives a $9 million which has been working to Insurance Co. division to MetLife for backed by consumer loans, including technical error. about Europe’s shaky15000 economy and over $90 billion to the Fed and so that private gains cannot Mortgage, CitiMortgage Inc. and of monetary policy, dubbed QE2, Treasury notes rises above 3%, fourth quarter rise 11% to $43.4 seeking an $11 billion repayment banking system to maintain liquidity, reports that foreclosures have lending bill imposing liability DEC 14 The CEO of Northern two decades. run on the bank in September 2007. to reduce over-reliance on ratings. JUL 17 Merrill Lynch announces UK is considered more severe than from the $700 billion bailout fund, FEB 17 After weeks of debate MAR 10 Citigroup CEO Vikram a relaxation in mark-to-market Citigroup, who lack the capital JUN 9 Ten of the nation’s biggest quarter of 2009 — the highest contraction15000 was slowing down, bailout package. voluntarily disclosed secret offshore following a 0.2% contraction in and protracted,” signaling that bonus in stocks15000 for 2009, far less consolidate its public finances, $15.5 billion, moving the company home mortgages. Issuers would the US job market. JUL 29 The Federal Reserve Bank Treasury before it can regain full be subsidized by public losses, PNC Bank NA on CreditWatch intending to drive down long-term indicating market unease about the billion. from acquirer Barclays. MAR 23 The Federal Reserve JUL 31 The two troubled the largest such intervention since doubled compared to the same on companies that securitize Rock resigns amid talks about writedowns of $9.4 billion primarily in the US. SEP 13 The Federal Reserve OCT 5 Germany announces it will bringing the total to $158.56 billion. DEC 19 President Bush supports JAN 22 Merrill Lynch CEO John in the House and Senate, a Pandit tells employees that Citi has accounting rules. to withstand worst-case-scenario financial companies get a green quarterly profit in its 140-year economic activity would remain accounts to the IRS. The amnesty the second quarter, signaling the interest rates will remain low for than the record set in 2007 with announces that it has no concrete closer to repaying the $130 billion be required to keep a part of the MAY 7 The FDIC closes more of New York announces that toxic independence. consumer protection is strengthened, negative pending a review of the interest rates and15000 stimulate the government tax deal. blocks a Bank of America plan to 15000 Bear Stearns hedge funds file September 11, 2001. time last year. mortgages. nationalizing the troubled UK bank. JAN 26 Bank of America and FEB 28 Federal Reserve Chairman JUN 25 Bank of America takes on its mortgage-related assets and US Treasury refuse to rescue guarantee all privately-held German a plan to lend General Motors and Thain resigns, having earlier $787 billion stimulus package generated $19 billion in revenue simulations. These banks must light to return $68 billion in federal history. Goldman had paid back its weak for the remainder of the year. SEP 23 The IRS extends an deadline will end on October 15. beginning of a possible recovery. some time. $69.7 million. plans to come to Greece’s aid as that it owes to taxpayers. securities in their own portfolios banks, bringing the total number of JUN 24 Fannie Mae creates a assets purchased to save AIG and capital and underwriting standards lenders’ foreclosure processes by economy. The Fed will buy $600 JAN 6 Treasury Secretary FEB 20 FDIC Chairman Sheila raise its dividend. for bankruptcy. Shortly thereafter, 14,000 Countrywide are in merger talks, Ben Bernanke warns of increasing over Countrywide Bank. and its hedges with troubled bond AUG 20 Lehman Brothers holds Lehman Brothers, citing a lack of bank accounts, worth €568 billion NOV 20 Prince Alwaleed bin Talal Chrysler $17.4 billion to prevent arranged for Merrill to be bought by is approved and signed into law, from January to February 2009. APR 6 The Congressional Budget prepare capital-raising plans by June bailout money — freeing the banks TARP money in June. amnesty program for people using part of a broader EU effort to help so that they retain some of the risk bank closures in 2010 to 68. plan to penalize home mortgage Bear Stearns are finally gaining AUG 24 Standard & Poor’s will be appropriate and excessive the Office of the Comptroller of the billion in long-term US Treasury DEC 17 General Motors’ IPO Timothy Geithner urges House Bair warns that big banks should the SEC launches an investigation AUG 10 Central banks around the OCT 16 Because of subprime NOV 21 Freddie Mac announces DEC 20 Bear Stearns reports the which would create the largest bank failures in a speech to the issuers, for a total of $19 billion secret talks to sell up to 50% of its “political will” for a bailout and ($731 billion). of Saudi Arabia, Citigroup’s biggest their collapse, subject to the Obama Bank of America. as the American Recovery and Office raises the projected taxpayer 8, to be implemented by November from constraints on executive pay AUG 6 Fannie Mae requests offshore accounts to evade taxes to OCT 15 Goldman Sachs posts NOV 20 Treasury Secretary DEC 14 Dubai World receives an JAN 13 Bank of America is sued Greece service its debt and stabilize MAR 17 A bankruptcy examiner’s under the proposed plan. borrowers who can afford their value. downgrades Ireland’s long-term risk-taking will be restrained. Currency. bonds over the next eight months. raises $20.1 billion, the largest in and Senate leaders to move be broken up, saying “if they cannot MAR 27 A condominium in the into Bear Stearns’ risk management world including the Federal Reserve, writedowns totaling over $3 billion, a $2 billion loss due to mortgage first quarterly loss in its 84-year mortgage lending group in the US. Senate Banking Committee. JUN 25 The Illinois Attorney in the last four quarters. By late shares to South Korean or Chinese the “moral hazard” of protecting individual shareholder, increases administration’s approval of their Reinvestment Act of 2009. MAR 11 UBS revises its fourth- costs of the US government’s 9. Some analysts remain wary. and leaving the government with a JUL 23 Public outrage escalates an additional $10.7 billion in October 15. A number of Americans a third-quarter profit of over $3 Timothy Geithner faces criticism injection of $10 billion from Abu by the SEC for its failure to disclose its finances. report determines that the SEC MAY 12 Eurozone GDP in the monthly payments but instead sovereign credit rating to AA, US history, allowing the company to quickly to raise the debt ceiling to be resolved in a bankruptcy-like Plaza Hotel sells for $48 million. process. the European Central Bank, the Citigroup’s profits drop 57% defaults and credit losses. Shares in history: $854 million. General files suit against summer, writedowns neared investors. Talks reportedly break failing companies from the OCT 6 French President Nicolas his stake in the embattled financial plans for the bailout money. JAN 24 Citigroup sells $12 billion quarter losses from $17 billion financial rescue program from its small gain on the rescue cash. These as bonuses at certain banks are government aid after posting a $15 have disclosed hidden assets in billion. The gains are attributed from two Republican members of Dhabi and avoids defaulting on a millions in losses at Merrill Lynch did not act in June 2008 after APR 12 The DJIA opens above first quarter is up by 0.2%, another choose to “strategically default” by further exacerbating the Eurozone SEP 16 Taxpayer losses from OCT 26 Freddie Mac anounces its NOV 7 Republicans rout in midterm repay $2.1 billion of the $49.5 billion avoid an unprecedented national process, they should be downsized Bank of Japan, the Swiss Central compared to the same quarter the Freddie Mac drop 29% and Fannie FEB 29 President Bush attacks a Countrywide Financial for unethical $40 billion. down because Lehman is asking too consequences of their actions. Sarkozy hosts an emergency summit giant. Stock prices plummet in spite of government-guaranteed bonds in FEB 23 The president of the to $18.06 billion, largely due to original projection of $189 billion MAY 9 Global stocks and crude oil banks include American Express, reported to be back at pre-crisis billion loss. a voluntary disclosure program. largely to the company’s trading the House for his role in the costly large debt repayment. prior to a shareholder vote to take FEB 26 Citing objections over determining that Lehman Brothers 11,000 for the first time since quarter of sluggish growth. locking them out 14000from new loans for debt crisis. government seizure of Fannie Mae share of late-paying mortgages fell elections. the US invested in GM’s bailout. default. Mr. Geithner, in his letter now.” MAR 31 Employment numbers rise Bank and the Bank of Australia prior year. Mae shares drop 25% immediately Democrat-sponsored housing bill to business practices which included high a price for its shares. As a result of this decision, the on the global financial crisis in of the capital injection, and despite DEC 19 The Bank of Japan cuts an attempt to strengthen its capital. World Bank forecasts that because additional writedowns. 14000to $356 billion. prices rise in response to optimistic Morgan Stanley, JP Morgan Chase levels, despite the fact that some 14000 Taxpayers that continue to hide activities in the fixed income, AIG bailout and his handling of the over the firm14000 in 2008. high government spending, Senator exaggerated the liquidity on its September 2008. seven years. and Freddie Mac are estimated at in September for a fourth straight to Congressional leaders of both for the second straight month, adding inject $300 billion to prevent a following the announcement. ease the credit crunch and threatens “deceptive conduct,” “misleading JUL 20 Merrill Lynch sells $31 markets go into a tailspin. Paris. Leaders of France, Germany, the $25 billion in TARP funds its interest rate to 0.1%. GNP of the global credit crisis, 50 stress test results. and Goldman Sachs. banks have already returned TARP AUG 7 AIG posts its first quarterly assets in offshore accounts will currency and commodities markets. credit crisis, since unemployment DEC 18 The FDIC closes seven Jim Bunning of Kentucky blocks books. MAY 20 The US Senate passes $400 billion, causing the Federal month, suggesting some stabilization NOV 10 Standard14000 & Poor’s reports DEC 28 Deutsche Bank pays US parties, says the outstanding gross FEB 25 New home sales fall to a 216,000 jobs. The unemployment 14000 liquidity crisis from freezing up the OCT 25 Merrill Lynch announces to veto the bill in its current form. marketing,” “hidden fees and risky billion worth of mortgage-backed the UK and Italy meet and agree Citi had received in October. and critical exports have fallen JAN 24 President Obama states million more people will join the MAR 12 Bank of America CEO APR 8 The SEC creates five new rescue money. profit since 2007. Shares jump by face harsher penalties and possible has continued to rise despite the banks, bringing the total number of JAN 21 Goldman Sachs trims its the extension of several programs APR 16 President Obama vows a sweeping financial reform bill, Housing Finance Agency to seek in the US housing market. that the cost to rescue Fannie Mae regulators $553.6 million to settle national debt stood at $13.95 record annual low in February at rate falls to 8.8%, its lowest in two credit markets. a $2.24 billion loss in the third terms” as well as “egregiously securities for $7 billion, at around SEP 14 Bank of America drops out that Europe will not allow any bank off sharply. proposals directed at curbing short MAY 20 Bank of America takes JUN 10 Following its Chapter criminal prosecution. OCT 16 Billionaire Raj interventions. bank failures in 2009 to 140. bonus pool to $16.2 billion in a including job benefits, which are MAR 19 The FDIC shuts down to veto any financial regulatory following months of debate over billions in repayment from the trillion, $335 billion below the 250,000. NOV 27 Freddie Mac announces 13,000 that “if nothing is done, the ranks of those earning less than Kenneth Lewis reports that the 20%. and Freddie Mac could reach charges of tax fraud. years. quarter, largely due to subprime a $6 billion share issue to cover unfair and deceptive lending to 22¢ on the dollar, stunning of the bidding for Lehman because to fail. NOV 24 The US government unemployment rate could reach $2 per day in 2009. bank was profitable in January and selling, which has been blamed for a step towards meeting its capital 11 bankruptcy reorganization, a JUL 23 The DJIA climbs back up Rajaratnam, a partner in the move to improve its image with the scheduled to expire in early March. seven banks, bringing the total reform bill that doesn’t “bring the the biggest overhaul of financial banks that sold bad loans to the OCT 29 The New York Times $685 billion. $14.29 trillion debt limit that AUG 16 Countrywide Bank borrows mortgage-related losses. more losses from mortgages. In steer borrowers to loans that Wall Street. of the goverment’s lack of support agrees to support Citigroup after double digits” and that “if we do not February of 2009. exacerbating the crisis, including requirements, reporting that $13.47 majority of General Motors’ shares above 9,000 as reports emerge that AUG 7 Freddie Mac reports its first Galleon Group hedge fund, is one NOV 25 Government-owned DEC 24 The US Treasury pledges public. The $10 billion bill also includes number of banks shut down in derivatives market under control” regulation since the 1930s. mortgage giants. reports that the DJIA finished its DEC 30 US retail sales rise just Congress set last February. FEB 28 192,000 US jobs are MAR 31 549,000 new houses are $11.5 billion from other banks to addition, Freddie Mac says it will were destined to fail.” The CEO of and enters into discussions to buy OCT 7 The DJIA falls below short-selling causes the stock price act swiftly and boldly, a bad situation FEB 27 Citigroup announces that bringing back the uptick rule. billion was raised through a sale of are now owned by the US Treasury. the housing market has bottomed out. quarterly profit in two years, netting of six people arrested in an FBI conglomerate Dubai World to provide unlimited financial highway funding and loans for small 2010 to 37. at the start of a meeting with his best October in four years despite NOV 28 Ireland accepts an 0.6% in December. added in February as unemployment built in March, an increase of 7.2% stave off bankruptcy. Later they OCT 26 Countrywide Bank reports cut its dividend by 50% in the fourth Countrywide, Angelo Mazilo, had JUL 22 IndyMac Bank closes Merrill Lynch instead. 10,000 for the first time since 2004. to plummet 60% in one week. The could become dramatically worse.” the US government will take a 36% MAR 16 President Obama reacts shares. No GM shares are available to the $768 million in the second quarter. crackdown on insider trading. requests a moratorium on its bond support to Fannie Mae and Freddie JAN 30 Fourth-quarter GDP shows businesses. Economic Recovery Team, adding MAY 20 A total of 775 banks are 13000 SEP 29 More than half of midterm election uncertainty. S85 billion ($113 billion) bailout JAN 13 Both Moody’s and dips to 8.9%. over February, but below the prior will be sued for predatory lending its first quarterly loss in 25 years of quarter in an attempt to shore up its been paid $132 million in 2007. down due to large mortgage-related government pledges another $20 equity stake in the ailing bank, in strongly to the news that AIG plans APR 8 The US Treasury announces public, but an IPO is planned for JUL 24 Sheila Bair, head of the The gain followed13000 a first quarter loss This marks the first time court- repayments. World stocks slump on Mac, removing caps on the amount a 5.7% growth pace, led by brisk MAR 23 Germany agrees to assist that Americans should not have to currently on the FDIC’s “problem Spain’s workforce goes on strike package from the European Central DEC 30 By the end of December, Standard & Poor’s indicate concern year’s rate of 634,000. Existing practices and for giving out loans losses. With $32 billion in assets, billion and also agrees to shoulder 13000that life insurers which qualify as 2010. authorized wiretaps are used to fears of a default on $4.1 billion 13000 step in and pay the price for the to protest the government’s about the deterioration of US fiscal $1.2 billion on about $1 billion in capital. SEP 15 Lehman Brothers OCT 10 The DJIA caps its worst JAN 25 The International exchange for $25 billion in TARP to pay out $165 million in executive FDIC, and Mary Schapiro, head of $9.9 billion. of assistance the firms can receive business spending that offset sluggish with a bailout of Greece, subject list,” the highest number since 1993. OCT 29 The Bureau of Economic Bank and IMF. 13000the US international trade deficit home sales are reported 3.7% higher 13000 without appropriate risk analysis. writedowns. JUN 25 The SEC announces that this is the second-largest bank announces that it will file for week ever with the highest one-day 90% of the losses from Citi’s toxic Monetary Fund announces it will bailout money. bonuses, stating that the corporation bank holding companies can receive of the SEC, recommend to the target inside traders on Wall Street. worth of debt held by investors from the government. consumer spending. to certain conditions including irresponsibility of speculators on austerity measures, as do workers Analysis announces an advance widens to $40 billion. health and warned that its AAA in March over February, but down NOV 27 Citigroup raises $7.5 it will revise its rules to reduce its failure in US history. The FDIC, bankruptcy — the largest in volatility on record in its 112-year mortgages and related securities. significantly adjust its forecasts for is in “distress due to recklessness capital injections from TARP funds. JUN 29 Bernie Madoff is indicted Senate Banking Committee that AUG 11 Japan’s central bank around the globe. that the IMF make a “substantial Wall Street. MAY 26 The DJIA closes below in a number of Eurozone countries estimate that the US GDP grew by NOV 30 Unemployment rises to credit rating could be at risk. Said 11% from the prior year’s levels. AUG 24 Bank of America buys OCT 31 Merrill Lynch CEO billion from the government of 12,000 reliance on credit rating agencies. which insures deposits in member American history. history. Over the previous eight global economic growth downward. FEB 27 The US economy has and financial greed.” He further and sentenced to 150 years in prison. a council made up of the Treasury keeps its rates at 0.1% and OCT 21 The SEC proposes changes contribution” to any rescue attempt. 10,000 amid long-term uncertainty experiencing similar spending cuts 2% in the third quarter. Economists 9.8% as the economy creates just Carol Sirou, head of S&P France, $2 billion in preferred shares of Stan O’Neal resigns after an Abu Dhabi. Existing rules implicitly assume that banks, estimates that the takeover trading days, the DJIA has dropped NOV 25 The Federal Reserve Shortly afterward, the IMF contracted at the fastest pace in a states that he has instructed APR 13 Goldman Sachs reports Department, the Federal Reserve, underlines its cautious outlook for for “dark pools,” unregulated trading APR 16 Amid controversy over its and volatility in the wake of the and tax hikes. say an increase of at least 3.5% over 39,000 jobs. “no triple-A rating is forever.” Countrywide Bank in an attempt to announcement that the company highly-rated securities are liquid could approximate $8 billion. SEP 15 The DJIA responds with a 22%, or 2,400 points, amid worries pledges $800 billion more to help forecasts a $1 trillion loss of growth quarter century, at an annualized Treasury Secretary Geithner to first-quarter 2009 earnings of $1.81 the SEC and the FDIC should the economy. systems that don’t publicly provide MAR 26 Senator Tom Coburn acquisition of Merrill Lynch, Bank European debt crisis. the next several quarters is needed restore investor confidence following would write down around $7.9 and have lower price volatility, an 504-point drop. of a worsening credit crisis and revive the US financial system. due to the financial crisis. rate of 6.2%. “pursue every legal avenue to billion, beating analyst expectations. provide oversight of the financial quotes and that compete with major of Oklahoma blocks a $9 billion of America reports a third-quarter SEP 30 Following Fitch and to relieve high unemployment. JAN 25 The Wall Street Journal JUL 22 Wachovia posts a $9 billion 12000 Standard & Poor’s, Moody’s concerns over Countrywide’s billion in subprime debt — the assumption that has been proven global recession. block these bonuses and make the markets. AUG 12 The12000 Federal Reserve holds exchanges. bill to extend jobless benefits for profit of $3.2 billion. MAY 26 Spurred by the expiration reports the total compensation at possible bankruptcy. largest writedown in the credit crisis wrong by the credit crisis. loss in the second quarter, due American taxpayers whole.” APR 13 SEC Chairman Mary 12000 one month over concern for the downgrades Spain’s ratings from publicly-traded Wall Street banks SEP 16 The US Federal Reserve JAN 26 Freddie Mac and Fannie 12000 interest rates at 0.25%, stating of an up-to-$8,000 tax credit, for 12000 largely to subprime loans. AAA to Aa1. Spain is Eurozone’s 12000 so far. O’Neal gets a $160 million announces it will lend insurer AIG OCT 11 The G7, a group of central Mae report that they will need up Schapiro meets with credit rating that although the worst of the crisis OCT 22 Morgan Stanley posts a national debt. APR 16 The SEC charges new home buyers, purchases of new and brokerages hit a record $135 AUG 28 The National Association payout upon leaving. $85 billion in emergency funds. The bankers and finance ministers to $51 billion in government funds MAR 17 A report is released agencies, investors and academics seems to have passed, “economic third-quarter profit of $757 million, Goldman, Sachs & Co. with fraud, homes in the US jumped to the fourth largest economy. billion in 2010. of Realtors reports that the number JUL 23 President Bush signs into government will take an 80% stake from the Group of Seven leading to continue operations. Losses are showing credit card defaults in in a roundtable discussion about activity is likely to remain weak for putting the firm back in the black accusing the company of misstating highest level in two years in April as of unsold homes in the US reached law a housing bill which contains 11,000 in the company’s preferred stock, economies, meet in Washington and blamed on continuing mortgage February rose to the highest level the oversight of the rating industry. some time.” after three consecutive quarters of facts and omitting information about buyers rushed to qualify for the tax SEP 30 Standard & Poor’s JAN 30 Dismal employment a 16-year high in July. a rescue plan for Freddie Mac which will pay a 10% interest rate. agree to urgent and exceptional delinquencies and falling in 20 years. Citigroup and American Issues discussed include investor losses. a financial product tied to subprime credit. discovers a “system error” that led continues with only 36,000 jobs TRACKING THE and Fannie Mae and gives the In effect this is a collateralized loan, coordinated action to prevent the securities values. Express report default rates of over-reliance on credit ratings, how AUG 19 In a blow to Swiss banking mortgages as the housing market to the faulty assessment of bonds created in January. government the power to guarantee a demand not made of the banks credit crisis from throwing the world approximately 9%. to increase competition and possible OCT 29 US GDP shows reported was beginning to falter. 11000 created through 50 securitizations secrecy, UBS strikes a deal with up to $300 billion in mortgages 11000 that bundled residential mortgages receiving government assistance. An into depression. JAN 26 Companies in the United new business models. the IRS and agrees to turn over expansion of 3.5% in the third 11000 refinanced through the Federal between 1994 and 2007. 11000 11000 AIG collapse would be catastrophic States and Europe announce 76,000 MAR 20 The FDIC revises11000 fourth- information on 4,450 American quarter, evidence that the stimulus APR 20 Lehman’s bankruptcy THE BUBBLE BURSTS: Housing Administration. because its extensive derivative OCT 14 United Arab Emirates’ job cuts, resulting in one of the quarter 2008 losses by the US APR 17 Citigroup reports better- clients who are suspected of using money is having an effect. The figure examiner says that Lehman violated CREDIT CRISIS The Origins of the Credit Crisis obligations, including credit default Ministry of Finance injects $19 than-expected profits of $1.6 billion is later revised down to 2.8%, but its own risk-management rules with worst days on record for workers. banking industry to $32.1 billion. Swiss accounts to evade taxes. JUL 31 Deutsche Bank reveals swaps, would have caused a global billion to domestic banks to in the first quarter of 2009 — the still shows the first signs of expansion the knowledge of the SEC. SEC head Between 2003 and 2007, $7 trillion worth of home mortgages were more writedowns bringing the total market collapse. facilitate capital adequacy to 10,000 JAN 26 Geir Haarde, the prime MAR 23 The US Treasury bank’s first profit in six quarters. AUG 20 At the G20 meeting in in the economy after four straight 10,000 10,000 Mary Schapiro states that “It is not 10,000 10,000 In 2007, the US experienced a financial crisis the likes of which have not sold in the US — or more than the worth of the entire US Treasury bond to $7.8 billion for the year. promote lending. The total amount minister of Iceland, resigns amidst announces details of the Public- Pittsburgh, world leaders declare quarters of contraction. clear that anything the SEC could market. Home prices increased to record levels by an average 124% SEP 22 Goldman Sachs and injected is now $32.7 billion. the turmoil created in his country by Private Investment Program. The APR 17 President Obama appoints “it worked,” referring to the have done would have prevented 10000 been experienced since the Great Depression. What is now being termed the from 1997 to 2006, and the housing market became a veritable casino Morgan Stanley request to become Herbert Allison to oversee the 10000 Lehman’s bankruptcy,” but says that the global financial crisis. program includes using $75-$100 coordinated global response to the 10000 “Great Recession” was a global financial crisis of unprecedented size, speed, that operated on the assumption that prices would appreciate indefinitely. bank holding companies which OCT 14 The US announces it government’s financial stability plan. “It is also clear that the SEC did not 10000 billion of TARP funds combined financial crisis. 10000 When the bubble finally burst and demand for the overpriced homes will allow them to take deposits, will tap into the first $250 billion JAN 27 Japan announces a $16.7 with private capital to generate10000 Allison previously served as the do enough as consolidated supervisor interconnectedness and complexity. Nations around the world are still dealing finally began declining, the approximately $1.3 trillion in inappropriately- TOXIC ASSETS: Pooling and but also require them to be more of TARP funds made available billion stimulus package to help $500 billion to buy toxic assets from President and CEO of Fannie Mae The “Cash for Clunkers” to identify certain risks and require issued subprime loans triggered a rash of foreclosures — making subprime AUG 24 with the aftershocks, and rumors of double-dip recessions loom while the closely regulated. Following the from the Emergency Economic businesses that have been decimated troubled banks. This amount can be after the government takeover in stimulus ends, resulting in over additional capital and liquidity.” mortgage loans the match that lit the financial crisis fuse. Exporting Subprime Debt Dow Jones Dow Jones Dow Jones Dow Jones international financial system slowly recovers. disappearance of Merrill Lynch, Stabilization Act. by the global financial crisis. Part of expanded to $1 trillion if necessary. September 2008. 9,000 690,000 cars being traded in for QUANTITATIVE EASING: Many subprime borrowers, who often had no income, assets or jobs (but Financial institutions securitized many of their subprime mortgages, selling Bear Stearns and Lehman Brothers, the plan includes buying corporate more fuel-efficient models. The Industrial Average APR 21 While being questioned Industrial Average Industrial Average Industrial Average could pay high upfront fees that increased bonuses), were unable to the loans for a fee while moving the mortgages off their books, thereby none of the large Wall Street OCT 16 Citigroup announces a debt, which will help businesses MAR 26 Updated commerce APR 21 The IMF releases the program, known as Car Allowance by the US Congress, Dick Fuld 9000 A New Monetary Policy What caused this crisis? Put simply, it was a chain reaction that began with service or refinance their mortgages when the bubble burst. Huge reducing their risk exposure and increasing their lending capability. Individual investment houses are left. third-quarter loss of $2.8 billion raise money. department data shows that the US Global Financial Stability Report, Rebate System,9000 provided $2.877 9000 admits to “bad judgments” in portfolios of defaulted mortgages lost 50–80% of their value, leading to mortgages were packaged together into pools called “mortgage-backed after receiving a $25 billion capital economy contracted at its fastest which increases its estimates of billion in rebates. Lehman’s property investments and To kick-start a dragging economy, a central bank’s first response is 9000 9000 banks and mortgage companies making housing loans to homeowners who catastrophic losses at financial institutions. This led to a credit crisis, as securities” in a variety of ways, and then these new securities were sold SEP 24 Amid the worsening injection from the US government. rate since 1982 in the fourth quarter. writedowns from US-originated a lack of economic foresight and usually to lower interest rates. This makes borrowing money easier and could not afford them, and who defaulted when the housing market began to banks initially stopped lending because of insufficient capital availability crisis, Presidential candidate John GDP shrank by 6.3%, slightly9000 less assets to $2.7 trillion. Projections understanding of the contagious more affordable for banks, and cheaper for their customers to borrow all over the world. due to housing loan/bond losses, which in turn led to a crisis in the stock McCain announces he will suspend OCT 17 The European Union’s than the 6.6% projected. show that writedowns may total nature of global finance. money as well. The available money supply expands when credit or loans Aside from lax regulatory oversight, the problem was exacerbated when contract. The crisis then spread through the banking system and internationally market when worried investors liquidated their equity portfolios. campaigning to return to Washington 27 leaders sign off on a joint $2.7 $4 trillion, with two-thirds coming are easily accessible, which allows money to pulse through the economy. KEY TO COLORS IMPORTANT TERMS investors relied solely on ratings from rating agencies rather than undertaking to focus on the financial crisis. trillion bank bailout plan after a from the banking industry. APR 22 President Obama urges through the securitization and export of toxic subprime mortgage-backed Consumers also experienced considerable losses. Many watched their their own (often costly) due diligence. For several years, these subprime MAR 30 The Bank of Spain In 2008, the US economy was in such dire condition that when the two-day summit in Brussels. Wall Street to support financial CREDIT CRUNCH — a severe DERIVATIVE — a financial contract mortgages were securitized by being 401(k) plans and other stock holdings drop to unimaginable levels, and mortgage bonds were given the highest rating: triple-A. rescues Caja Castilla La Mancha, the 8000 Federal Reserve Bank lowered interest rates, it was ineffective. The instruments. This triggered collapses in credit markets, asset prices and this helped create a consumption crisis as consumer purchases fell off SEP 24 Goldman Sachs receives first Spanish financial institution to APR 23 Morgan Stanley releases 8000 reform at a speech at Cooper Union Fed then turned to a different strategy, called “Quantitative Easing,” Investment companies, reduction in the availability of credit, whose value is based on the value pooled together and packaged as 8000 dramatically. Serious unemployment became a function of this negative But in the summer of 2007, the agencies began to downgrade securities they a $5 billion capital infusion from OCT 22 Wachovia announces third- be bailed out since the crisis began. first-quarter loss figures of $578 in New York City. to flush the economy with money with the objective of stimulating 8000 eventually in global economic activity. from corporate lines of credit to of another security, such as a bond bonds whose interest was paid to 8000 rating agencies had previously rated higher, as defaults began to occur on subprime loans. Warren Buffett’s company, Berkshire million. bank loans. Readily-available credit or a market index. Examples include investors by the homeowners as they cycle. Stimulus spending by the government is seeking to correct what quarter losses of $23.9 billion. The rescue includes $11.9 billion in spending and, in turn, creating jobs. To inject money into the economy, and banks Hathaway, in a show of confidence. APR 27 Standard & Poor’s the Fed purchased $1.8 trillion worth of debt in the form of treasury This timeline traces the development of the crisis from the bursting of the is the lifeline of commerce, and futures, forwards, swaps and options. made their mortgage payments. could otherwise become a systemic collapse. American institutions marketed toxic assets (subprime-backed bonds) liquidity, as well as the stipulation8000 downgrades the rating on Greece’s without it the flow of business slows In effect, a derivative contract is Hundreds of billions of dollars of globally, which affected investors at all levels, from pension funds and local OCT 23 Alan Greenspan tells the that the bank’s directors be replaced APR 24 G7 finance ministers meet CREDIT RATING AGENCIES: A Conflict of Interest? bonds from large banks between November 2008 and Spring 2010. debt to BB+, or junk status, amid housing bubble through the unprecedented trillions of dollars being guaranteed dramatically. The credit crunch also speculation on the future price of an these bonds were exported all over governments to international banks and corporations. Defaulting mortgages SEP 26 US regulators seize the House Committee on Oversight and LEHMAN: A Turning Point with central bank nominees. in Washington, DC and comment In late 2010, the Fed purchased an additional $600 billion worth of that the world’s economy is starting The validity of credit ratings from agencies such as Standard & Poor’s, fears of a default on loans by the bonds in a second round of quantitative easing, commonly known as means that it is more difficult for asset, the idea being to reduce the the world, which created enormous created losses and widespread economic slowdowns, which then deepened assets of Washington Mutual, the Reform that he is “shocked” at the in the Markets and in Investor and injected into the private sector by the US government. Its purpose is and spread to most major debt categories like falling dominoes. sixth largest US bank. Washington breakdown in the credit markets. 7,000 to show signs of stabilization, but Fitch and Moody’s came sharply into question in 2008, when top-grade Greek government. “QE2.” The Fed conducted additional rounds of quantitative easing in International developments consumers to obtain financing. uncertainty by creating a contract for problems when a great many of the 7000 mortgage-backed securities were found to be highly risky and accounted for buying or selling in the future at a bonds lost their value as a result of Mutual had $310 billion in assets, Even though he had concerns and Consumer Confidence reiterate the need to maintain 7000 September 2012 (QE3) and December 2012 (QE4). to shed light on the complexity and enormity of this important moment in CREDIT DEFAULT SWAP — a To restore the banking system required recapitalizing banks while removing many of the “toxic” assets that were exported to banks all over the world. 7000 specified price. the subprime crisis. making this the largest bank failure in 2005 that risks were being stimulus efforts. APR 30 US first-quarter GDP is First used by Japan in the 1990s, quantitative easing is a relatively new 7000 hundreds of billions of dollars of failed bonds from their balance sheets. This 7000 contract that a lender makes with Although Lehman Brothers was about to fail in September 2008, financial history as it continues to unfold. in US history. understated, he says that he is “in Since the early 20th century, ratings have provided a benchmark for how reported at 2.7%, marking three an outside party who agrees to HEDGE FUND — an unregulated SECURITY — a financial instrument was difficult because these bonds were so non-transparent — very complex essentially as a function of huge losses related to enormous bets on monetary policy surrounded by some controversy. It is regarded by critics a state of shock and disbelief” over APR 30 US automaker Chrysler much risk assets (such as bonds) carried for their holders. The more likely consecutive quarters of growth and repay the value of a fixed-interest investment fund for sophisticated or that indicates ownership of equity or and intertwined — that it was difficult to determine what they were worth. subprime mortgage-backed securities, no financial institution could be as a new method for central banks to “print money,” except that when SEP 26 JP Morgan acquires the failures of lending institutions to Group LLC files for Chapter 11 an issuer was to default, the higher the risk and the lower the credit rating. indicating a resurgence of consumer Until toxic assets could be properly priced, few investors were willing to buy induced to take over the 150-year-old, 26,000-employee investment bank. 7000 the Fed purchases bonds from banks, it cannot ensure that the money instrument (such as a mortgage wealthier investors who are willing to shares in a company (a stock) or debt Real estate WaMu’s bank deposits, assets and practice basic risk management. bankruptcy protection. The most creditworthy securities received prime ratings and carried spending. bond) in the event that the instrument accept a large degree of risk. These (a bond); also refers to assets that can them, which is why banks were hesitant to extend the credit necessary for The Bush administration nevertheless refused to offer the same financial meant to be introduced into the economy will be passed on to consumers. market the troubled mortgage portfolio comparatively lower risk of default. Lower grades were assigned to more loses its value, in return for periodic funds seek higher returns using riskier be pledged as collateral in obtaining a economic recovery. Too much uncertainty enshrouded both the value of these guarantees that helped save Bear Stearns, Fannie Mae and Freddie Mac. Critics also state concerns that measures to increase the money supply from the federal government, speculative investments, and the lowest were reserved for entities that were payments. It is a form of insurance, strategies than regulated funds. bank loan. assets and the potential future losses associated with them, causing banks to The Treasury felt it was important to uphold a free market belief that 6000 now could cause unexpected inflation surges in the future. Such concerns making it the largest depository hold tight to their money and depriving the economy of the required credit. 6000 unlikely to make the payments they promised. 6000 and the difficulty of assessing the effectiveness of the policy have made and many issuing entities were LIQUIDITY — the ability of a SUBPRIME LOANS — refers in the institution in the US. the freedom to fail was an important ingredient for a healthy capitalist 6000 grossly overexposed, such as AIG system, and that a moral hazard risk would exist if companies were However, certain securities that were backed by subprime mortgages — some wary of the Fed’s decision for a second round of easing. 6000 6000 company to easily convert assets like timeline to home mortgage loans to inclined to believe government intervention would save them if they made meaning backed by loans make to risky borrowers who had poor credit Government actions which had over $450 billion in credit stocks, bonds or commodities into borrowers whose ability to repay the SEP 29 The US government votes serious, and even reckless, mistakes. ratings — were assigned triple-A ratings (the highest grades), and many and statements default swaps on its books. The entire cash (or the equivalent of cash) with a loans was questionable, since they against the $700 billion emergency banks and other institutions bought the assets after relying solely on ratings unregulated global credit default swap minimal loss of value. Corporations had inappropriately low credit scores. bailout bill proposed by the Treasury, The reaction to Lehman’s bankruptcy, the biggest in US history, led the from leading rating agencies rather than undertaking their own (often market exceeds $62 trillion. constantly need liquidity or the ability Defaults on these loans were a major created based on their concern credit markets to collapse as the stock market plunged, with the DJIA costly) due diligence. Entities like pension and mutual funds, which were CREDIT RATINGS — the quality to create liquidity to meet their factor in triggering the current over an impending collapse of dropping 508 points. AIG began rescue talks with the Federal Reserve, required to purchase only highly-rated securities, suddenly found themselves assessments that rating agencies make current financial obligations. Banks financial crisis. the financial system. The plan is and Merrill Lynch agreed to be bought by Bank of America. Goldman 5000 48 Wall Street in trouble when it emerged that these assets actually carried a high risk of 5000 DJIA and of mortgage-related bonds based on need liquidity to meet depositor criticized for being short on details Sachs and Morgan Stanley came under attack as rumors circulated that 5000 New York, NY 10005 SYSTEMIC RISK — risk due to default, and the balance sheets of institutions around the world suffered as 5000 economic indicators the likelihood of their being repaid withdrawal demands or requests and for giving Treasury Secretary they were having liquidity problems, being unable to borrow under normal 5000 212-908-4110 the interconnectedness of banking, they were forced to write off billions in losses. in full. The corporations whose debt for loans from borrowers. A lack of investment and insurance institutions, Henry Paulson too much control over bank lines, while fearful hedge funds withdrew huge deposits. Some critics alleged that there was a conflict of interest when securities www.MoAF.org instruments they were rating paid liquidity is one of the problems banks which can bankrupt or seriously massive amounts of taxpayer money. The first week in October 2008 was Wall Street’s worst week in 100 were assigned ratings. Until the 1970s, when photocopying technology the agencies. A triple-A rating is have been facing in recent years. undermine an entire market or years, with the Dow falling 18% and the short selling spread to overseas became widespread, rating agencies would charge subscription fees for the highest investment-grade rating. SECURITIZATION — the conversion financial system if a major player SEP 29 In response, the DJIA markets. The French finance minister called the Treasury’s unwillingness 5000 their material. Later, they began to charge the issuers of the securities, Bonds with ratings of triple-B or of bank loans (for example, fails, or if a cluster of failures falls 778 points — its worse point to support Lehman “a horrendous error,” a feeling widely shared in lower often promise a higher yield decline ever. which created the potential for conflicts of interest. The rating agencies, 4000 mortgages) into tradable securities, occurs together. the US markets. but are considered speculative, with a however, say they have significant processes and procedures in place to 4000 such as bonds, for sale to investors. 4000 greater likelihood of default. mitigate potential conflicts of interest. The SEC has been critical of the 4000 SEP 29 The government of Iceland 4000 In the context of the timeline, takes control of Glitnir, the country’s rating agencies’ failure to manage conflicts of interest and has proposed third largest bank. and enacted rules to curtail potential problems. SEP 30 Ireland guarantees deposits 4000 of six of the largest Irish banks. 3000 3000 3000 3000 3000 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street 48 Wall Street New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 New York, NY 10005 212-908-4110 212-908-4110 212-908-4110 212-908-4110 3000 212-908-4110 212-908-4110 212-908-4110 212-908-4110 212-908-4110 www.MoAF.org www.MoAF.org www.MoAF.org www.MoAF.org www.MoAF.org 2000 www.MoAF.org 2000 www.MoAF.org 2000 www.MoAF.org 2000 www.MoAF.org 2000 2000 1000 1000 1000 1000 1000 1000 0 0 0 0 0 3/2/09 4/1/09 5/1/09 6/1/09 7/1/09 8/3/098/3/09 9/1/09 10/1/09 11/2/09 12/1/09 1/4/1012/21/091/4/10 2/1/10 3/1/10 4/1/10 5/3/10 6/1/105/21/106/1/10 7/1/10 8/2/10 9/1/10 10/1/1010/1/1011/1/1011/1/10 12/1/10 1/3/11 2/1/11 3/1/11 4/1/11 0 APRIL 2011 MAY 2011 JUNE 2011 JULY 2011 AUGUST 2011 SEPTEMBER 2011 OCTOBER 2011 NOVEMBER 2011 DECEMBER 2011 JANUARY 2012 FEBRUARY 2012 MARCH 2012 APRIL 2012 MAY 2012 JUNE 2012 JULY 2012 AUGUST 2012 SEPTEMBER 2012 OCTOBER 2012 NOVEMBER 2012

APR 2 The state of Illinois reports MAY 2 The dollar hits a 52-week JUN 1 GDP growth is reported at JUL 3 Two-year Treasury bond AUG 2 The yield on two-year SEP 1 The DJIA has been down OCT 1 Occupy Wall Street NOV 2 Since 1981, long-term DEC 3 American Airlines files for JAN 1 Eastman Kodak files for FEB 1 The January jobs report MAR 4 The US economy adds APR 1 Equity markets post a MAY 2 The iconic Edvard Munch JUN 1 Only 69,000 new US jobs JUL 1 June employment in the AUG 2 New York State threatens SEP 2 Employment rises by less OCT 3 Second-quarter GDP grows NOV 2 After several tepid months, it carries $8 billion in total debt. low of $1.48 to the Euro; silver nears an annualized rate of just 1.8% in yields fall to a record low of 0.33%. Treasury bonds skids to another 9.34% in the past four months. It protesters set out to march across Treasury bonds have returned an bankruptcy, stating it lost $10 billion Chapter 11 bankruptcy protection, indicates the economy added 227,000 jobs. The unemployment strong first quarter: DJIA gains 994 painting “The Scream” sells at were added in May. Joblessness US rises by a scant 80,000 jobs. to revoke the license of London’s than 100,000 jobs; previous months’ a feeble 1.3%, below estimates of the US economy adds a robust $50/oz. and gold hits $1,556/oz. the first quarter, the lowest in three Interest on the benchmark 10-year record low of 0.176%. was off 4.36% in August, the worst the Brooklyn Bridge. The New York annual average 11.5%, while the in the last 10 years. claiming $5.1 billion in assets and 243,000 positions, and the rate holds steady. points (8%) and S&P 500 rises 151 auction for a record $120 million. ticks higher to 8.2%, the first The unemployment rate remains Standard Chartered after anemic increases are revised lower. 1.7% and well off the first-quarter 171,000 jobs in October; estimates APR 2 Standard & Poor’s quarters. notes falls from 3.028% to 2.82%. one-month result in 10 years. Times reports that more than 700 S&P 500 has yielded 19.8%. It is $6.75 billion in liabilities. unemployment rate fell to 8.3%. points (12%). increase in almost a year. unchanged. accusations the bank hid $250 billion Still, unemployment falls to 8.2%, pace of 2%. for August and September are downgrades ratings on Irish, MAY 2 Federal attorneys sue AUG 2 The axe falls: Standard & arrests are made. Similar protests the first time bonds have beaten DEC 3 Fitch cuts ratings on Bank MAR 4 Citigroup names former MAY 4 US employment rises by in transactions with Iran. The bank as jobseekers leave the market. revised up. Unemployment rises to Portuguese and Greek sovereign Deutsche Bank for $1 billion in JUN 1 Moody’s puts the AAA JUL 3 Bank of America plans to Poor’s downgrades US debt from SEP 1 Bank of New York Mellon continue across the country. stocks over a 30-year period since of America, Goldman Sachs and JAN 1 Transcripts released from FEB 1 Fed Chairman Ben Bank of Hawaii CEO Michael APR 3 In a rare development, the a tepid 115,000 jobs. Joblessness JUN 3 Ken Lewis, former CEO JUL 1 Egan-Jones cuts the rating denied the charges, but settled for a OCT 3 Bank of America agrees to 7.9% on the eve of the Presidential debt. connection with its US mortgage rating for government debt under pay $20.6 billion to settle claims by AAA to AA+. dismisses CEO Robert Kelly. the mid-1800s. Citigroup. the Fed’s 2006 meetings show Bernanke tells the House Budget O’Neill to replace Richard Parsons Canadian Commodities Futures eases down to 8.1% and becomes of Bank of America, admits under on German government debt, an fine of $340 million, the largest ever SEP 19 Citigroup agrees to pay a a $2.43 billion payment to investors election. insurance program. review for possible downgrade. investors in mortgage bonds issued 16000OCT 2 Federal prosecutors secure widespread obsequiousness toward Committee that economic indicators as chairman. Trading Commission accuses Royal a major discussion point in the oath that he knew losses at Merrill indication that woes in Southern in a money laundering case. $600 million shareholder settlement to settle a class action fraud case APR 2 The SEC investigates by Countrywide, which Bank of AUG 2 Congress reaches a SEP 1 The Department of Justice a guilty verdict in the insider trading NOV 2 Hank Greenberg, former DEC 3 The House of then Chairman Alan Greenspan. “show some signs of improvement,” Bank of Canada of illegal trading to upcoming Presidential elections. Lynch were much greater than Europe are spreading. to investors who said the bank did regarding its acquisition of Merrill NOV 3 Greece releases budget Berkshire Hathaway after Warren MAY 2 A federal jury convicts JUN 1 The House of America acquired in 2008. compromise to raise the debt ceiling, sues to block AT&T’s proposed case against Raj Rajaratnam, former boss of AIG, sues the US for $25 Representatives approves a Transcripts also reveal officials but that the economy remains MAR 4 The Fed asks Citigroup gain tax advantages. what was told to Bank of America AUG 9 JPMorgan Chase postpones not properly disclose its involvement Lynch in 2009. estimates that are far worse than Buffett’s heir apparent, David Galleon Group founder Raj Representatives votes down averting a government shutdown. $40 billion acquisition of T-Mobile boss of hedge fund Galleon Group. billion, claiming the government $1 trillion appropriations bill. joking about indicators that later delicate and the national deficit, and three other banks to resubmit MAY 4 The Fed releases shareholders in advance of the JUL 1 Stockton, CA, files for plans to resume buying its own in subprime debt. Citi denies the previous worst-case projections. The Sokol, resigns over insider trading Rajaratnam on 14 counts of insider a bill to raise the national debt JUL 3 The FDIC adopts rules Automatic spending cuts will be USA on grounds it would hamper He will serve 11 years in prison and improperly took over AIG. proved to be early indications of the estimated to be $1.1 trillion for their capital plans after failing the APR 5 The Comptroller of the preliminary guidelines for taking acquisition. Shareholders are suing Chapter 9 bankruptcy, the largest shares in the wake of huge trading accusations. OCT 3 Former FDIC head Sheila country’s debt could reach 200% of accusations. trading in the largest such case in limit by $2.4 trillion. allowing recovery compensation made if a “super committee” cannot competition. Seven states also pay a $10 million fine. DEC 3 The Iraq War ends as the coming financial crisis. 2012, needs to be addressed. regulator’s stress test. Currency orders a cease and over a failing institution that Bank of America. US city ever to seek protection from losses. Bair says of then Fed chair Timothy GDP in 2013. history. from executives who cause a agree on $2.4 billion in cuts by oppose the deal. NOV 2 The Congressional last US base is handed to the Iraqi desist order against Citigroup for imperils the larger financial system. creditors. Hit hard by the real estate SEP 19 Bank of Japan eases Geithner, “Tim seemed to view his APR 5 New jobs jump by 244,000, JUN 1 Greek officials predict financial institution to fail. Thanksgiving. OCT 2 Rates for what were once “super committee” put itself out government. The war lasted almost JAN 1 France and Austria lose FEB 1 25 of the 27 EU nations MAR 4 Greece completes the violating bank regulations relating JUN 5 The Fed proposes new bust, Stockton must refinance $700 AUG 9 After a 12-month monetary policy in an effort to job as protecting Citigroup from me, NOV 5 The European Commission but unemployment rises only from MAY 2 US Navy SEALs kill Osama they need at least S60 billion SEP 1 The new15000 head of the standard 30-year home mortgages of its misery, ending the bipartisan nine years, costing close to 4,500 their sterling AAA debt ratings as accept a German proposal for largest-ever sovereign debt to protections against money MAY 6 Socialist François Hollande stringent standards for all banks million in debt. investigation, the Justice revive the stagnant economy. when he should have been worried drops its forecast for Eurozone 8.8% to 9%. bin Laden during a surgical strike in ($86 billion) in financial assistance JUL 3 International regulators AUG 2 The European Central Bank International Monetary Fund, fall below 4% for the first time initiative to cut $1.2 billion from the American lives and $4 trillion. Standard & Poor’s downgrades the tighter budgetary discipline, as well restructuring. Bondholds agree laundering. is elected president of France over regardless of size. Department and the SEC decline to about protecting the taxpayers from growth by a full order of magnitude Abbottabad, Pakistan. through 2013. raise capital reserve requirements buys €5 billion ($7.12 billion) in Christine Lagarde, calls for since comprehensive records have deficit. Automatic spending cuts will nations to AA+ and the ratings of as a permanent emergency fund. to take a loss of about 74%, a incumbent Sarkozy. JUL 2 Prosecutors secure two charge Goldman Sachs for missteps SEP 19 Government and industry Citi.” Separately, Citi is fined $2 to an ephemeral 0.1% for 2013. APR 5 A Senate report accuses for large multi-national banks. bonds from Italy and Spain. mandatory capitalization standards been kept. kick in over several years if no other DEC 6 AT&T abandons its seven other Eurozone countries. relatively small price to pay to APR 13 In a lecture at George JUN 6 Hong Kong Exchanges and victories in the Madoff mega- during the mortgage crisis. data indicate home sales and million for IPO irregularities. Goldman Sachs of manipulating MAY 2 Five big banks face as much JUN 4 Employment in the US rises for European banks. measures are taken. $39 billion bid for T-Mobile FEB 3 General Motors reports the contain the Eurozone debt crisis. Washington University Bernanke MAY 9 Spain nationalizes Bankia, Clearing, owner of the The Stock swindle. Peter Madoff, brother of construction rose to their highest NOV 16 JPMorgan Chase and markets and misleading clients. as $17 billion in civil litigation for by a token 18,000 jobs in June. JUL 5 Borders’ 400 book stores AUG 2 After posting a quarterly OCT 5 Unemployment falls to 9% USA. The kill fee for the deal is JAN 1 Michael J. Williams, CEO of largest profit in its 103 year history, says, “We did stop the meltdown.” one of the largest banks in the Exchange of Hong Kong and the scheme-leader Bernard, pleads AUG 9 Disgraced mortgage giant levels in two years, indicators that OCT 3 UK regulators develop a Credit Suisse agree to pay a joint Deutsche Bank, Washington Mutual, improper foreclosures. begin their liquidation sales. loss of $2.9 billion, Fannie Mae SEP 1 Hurricane Irene, the first in October, but the economy only NOV 2 Fitch downgrades $3 billion to T-Mobile parent Fannie Mae, resigns. The embattled $7.6 billon for 2011. MAR 7 Allen Stanford is convicted He added that “without the forceful country, by converting a bailout loan Hong Kong Futures Exchange, guilty to fraud charges, and money Fannie Mae reports a second- the housing market recovery is new monitoring scheme for Libor. total of $417 million to settle SEC Moody’s, Standard & Poor’s and the JUN 4 JPMorgan Chase will pay seeks $5.1 billion in support, raising major storm to hit the Northeast adds a scant 80,000 net jobs. Portugal’s debt rating to junk; Deutsche Telekom. mortgage giant is at the center of of swindling investors of more than response in 2008, we could have had to equity. agrees to buy the London Metal manager Ezra Merkin agrees to pay quarter profit of $5.1 billion. This gaining traction. civil charges of misleading investors Office of Thrift Supervision are also MAY 4 The SEC issues subpoenas $154 million to settle SEC charges JUL 5 It is revealed that Goldman its bailout total to $103.8 billion. in many years, kills14000 36 and leaves Moody’s does the same to Hungary. the housing crisis. FEB 5 Canadian investigators $7 billion in an off-shore Ponzi a much worse outcome.” Exchange for $2.1 billion. $410 million to settle a civil suit is only the second quarter it did not OCT 3 Housing starts spike by about mortgage bonds in 2008. criticized. to JPMorgan Chase seeking that it defrauded investors who Sachs received the single biggest billions in property damage. OCT 5 Regulators propose the Fitch puts France’s AAA rating DEC 6 Bank of America agrees to reveal they are probing manipulation scheme. MAY 10 JPMorgan Chase over directing funds to the Madoff’s require bailout money. 15% in September to the highest mortgage documents. bought mortgage securities. loan ($15 billion) from the Federal AUG 4 Interest on 10-year “Volcker Rule” as part of Dodd- on watch for possible downgrade. pay $335 million to settle federal JAN 4 Morgan Stanley forecasts of the London interbank offered rate APR 17 Departing Citigroup discloses $2 billion in trading JUN 6 China reduces its interest Ponzi operations. level in four years. NOV 19 Moody’s lowers France’s APR 5 The Federal Reserve Reserve during the bailout. Treasury bills falls below 2%, the SEP 3 US employment ticks higher Frank reforms. The rule would Standard & Poor’s cuts Belgium one allegations that its subsidiary, GDP growth at 2% for this year and (Libor), a key global interest rate MAR 9 Regulators propose a Chairman Richard Parsons tells losses. CEO Jamie Dimon admits rates, the first cut since 2008, AUG 18 Economist Benn Steil top-tier credit rating. discloses it allowed foreign banks to MAY 4 Portugal accepts a S78 JUN 4 The Federal Reserve lowest rate in half a century. by just 103,000 jobs in September. curtail proprietary trading by banks. grade to AA. Countrywide Financial, overcharged next. Real GDP growth at the close benchmark. “Corzine Rule” that would require the annual meeting, “…what we to “egregious mistakes.” indicating worry over sustained JUL 5 A report by the House urges the mortgage-interest 13,000 OCT 5 Treasury reports the budget convert $118 billion in junk bonds billion ($116 billion) rescue package indicates it will keep interest JUL 5 The court-appointed The unemployment rate stays level black and Hispanic borrowers. of 2011 was 2.7%. a brokerage principal to authorize saw in the 2007, 2008 crash was growth. Committee investigating Bank of tax deduction to be phased out. deficit for the 2012 fiscal year NOV 20 Criminal insider trading into cash during the financial crisis. from the International Monetary rates at historically low levels “for trustees recovering money for AUG 4 Interest goes negative: Bank at 9.1%. OCT 5 Existing home sales rise NOV 2 Jefferson County, AL, FEB 8 JPMorgan Chase, Bank transfers of customers’ funds. The the result of the throwing off of MAY 15 The Justice Department America says Countrywide Financial Removing the deduction could (ended September 30) is $1.089 charges are laid against the founder Fund and the European Union. an extended period.” The growth victims of Bernie Madoff raise their of New York Mellon begins to assess 1.4% in October; not robust, but which includes the industrial city DEC 6 The Federal Reserve JAN 4 Philippe Hildebrand, head of America and three other major rule is named after Jon Corzine, CEO Glass-Steagall.” begins a probe into JPMorgan JUN 7 Bernanke tells Congress, gave discount loans to members of reduce the federal deficit by more trillion, equal to 7% of GDP. of hedge fund SAC Capital Advisors, APR 7 Standard & Poor’s reaffirms forecast is cut from 3.2% to 2.8%. total to $11 billion. a charge of 13 basis points against SEP 3 Bank of America,13000 along with better than anticipated. of Birmingham, seeks bankruptcy proposes new mandates for bank of the Swiss National Bank, resigns banks strike a deal with federal of bankrupt MF Global Holdings. Chase’s $2 billion in trading losses. “the situation in Europe poses Congress and Fannie Mae executives than $460 billion. Steven Cohen. a AAA rating for Treasury securities, MAY 6 The Federal Home Loan large cash deposits by major clients. many other institutions, announces protection, the largest such net credit exposure of 10% in the midst of a currency trading regulators on charges of foreclosure APR 25 The UK slides into Dimon says the totals could increase. significant risks to the US financial as it opposed increased regulation. OCT 9 Federal attorneys bring but changes outlook to negative. Bank of Boston sues Citigroup and JUN 4 Currency raider George JUL 5 16 banks barely pass the new fees on retail transactions, municipal filing in US history. A of regulatory capital. Smaller controversy. abuse. The banks agree to pay a MAR 12 In reaction to new Dodd- recession in the first fiscal quarter. Fed data indicates the bank’s total system and economy.” Countrywide collapsed in the AUG 22 “Housing is on the mend,” civil charges against Wells Fargo NOV 21 Hostess Brands, makers Bank of America for mortgage Soros converts his $24.5 billion EU’s stress test, while eight fail AUG 4 Central Falls, RI, files for including a $5 monthly charge for $4 billion refinancing deal with institutions would get a cap of 25%. total of $25 billion, but only agree Frank regulation, Deutsche Bank credit default swap position went housing bust and was acquired by says Robert Toll, executive chairman for reckless lending during the of iconic Twinkies and other sugary practices. hedge fund into a “family office” to outright with a combined reserve Chapter 9 protection after deals to debit cards. creditors falls apart over final JAN 6 Another pleasant surprise to nominal changes in procedures. alters its legal structure to avoid APR 26 Standard & Poor’s from $24 billion in September 2011 JUN 7 Fitch cuts Spain’s credit Bank of America. of house builder Toll Brothers. He housing bubble. snacks, is approved for liquidation by avoid new regulations. shortfall of S2.5 billion ($3.5 avoid bankruptcy fail. details. DEC 6 The US, Japan and India on the unemployment front: January adding $20 billion in capital to its downgrades Spain’s credit rating to $102 billion by the end of April. rating. Spain is granted a S100 adds, “We do remain cautious in our a federal judge after failing to wring MAY 6 NASDAQ OMX and billion). SEP 3 London police arrest UBS hold their first formal, high-level added a quarter of a million new FEB 13 Moody’s cuts credit ratings US operations. by two levels. billion ($125 billion) bailout from JUL 5 The European Central Bank, optimism, as we believe consumer OCT 11 Standard & Poor’s drops concessions from its unions. Intercontinental Exchange launch a AUG 4 France, Spain, Italy and trader Kweku Adoboli, who is NOV 5 Unemployment accelerates tri-lateral meeting in Washington. jobs. The unemployment rate ticks on Italy and Spain and four other MAY 18 Face plant for Facebook. Eurozone finance ministers. the Bank of England and China’s confidence remains fragile…” Spain’s credit rating to nearly junk hostile takeover of NYSE Euronext JUL 7 Accelerating after several Belgium ban short selling. charged with fraud12000 for unauthorized its decline, reaching 8.6% in lower to 8.3%. European nations. Moody’s also MAR 14 In the “resignation Its IPO raises $18.4 billion, the central bank all trim interest rates. status. for $11 billion. weak months, employers add a trading that cost the bank $2 billion. November. Net jobs increase DEC 9 The Dow finishes the issues a warning against France and heard ‘round the world,” Goldman largest tech IPO in US history, but JUN 15 Rajat Gupta, former The European Central Bank cuts its AUG 30 Embattled Barclay’s taps meaningful 117,000 jobs in July. AUG 4 An earthquake and then a 120,000. year with a net gain of 5.5%; JAN 8 The Financial Times the UK. Sachs executive Greg Smith resigns shares finish below the offering price director at Goldman Sachs, is rates to a record low of 0.75%. Antony Jenkins to replace Bob OCT 16 CEO Vikram Pandit and MAY 8 US jobs rise by a mere hurricane batter the US East Coast. SEP 6 Third quarter growth for the the broader S&P 500 ends with launches a series on ‘rethinking publicly via a scathing New York on the first day and continue to fade. convicted of conspiracy and Diamond as CEO. COO John Havens quit Citigroup 54,000. The unemployment rate rises JUL 7 Quarterly reports detail that US economy is revised to 2%, well NOV 5 Trustees liquidating the a nominal 0.4% decline; the capitalism’ after the financial crisis. FEB 29 Fannie Mae posts a loss Times op-ed piece stating the firm securities fraud for passing JUL 7 Barclay’s agrees to pay suddenly. Citi stock lost almost 88% from 9% to 9.1%. Citigroup has made $22 billion in AUG 6 Second-quarter GDP below the projected rate of 2.5%. brokerage firm MF Global say more NASDAQ falls 1.8% for the year. Author John Plender argues that of $2.4 billion at the end of 2011 put profits ahead of clients. information to a hedge fund over $450 million to settle charges of its value on Pandit’s watch. He is risky loans to European countries; growth is reported at just 1%, than $1 billion of investor assets popular acceptance of capitalism and states it will pursue additional 11,000 manager. Separately, Texas financier it manipulated the key Libor succeeded by Michael Corbat. MAY 11 Dominique Strauss-Kahn, JPMorgan Chase has $15 billion below estimates of 1.3%. SEP 17 Hundreds of people from may be missing. DEC 9 The European Central Bank has waned due to increased federal aid, about $4.6 billion. That MAR 31 In March, sales of new, Allen Stanford is convicted in a international interest rate. Several head of the International Monetary at risk. across the country convene in Lower provides low-interest, three-year economic inequality. Former US would take its total government single family houses fall 7.1% , but $7 billion Ponzi scheme. top executives quit including CEO OCT 22 Iceland passes 11000 NOV 5 Raj Gupta, former director borrowing to more than $120 billion. Robert Diamond. Fed investigators Fund, resigns after being arrested for AUG 6 AIG sues Bank of America Manhattan to protest economic loans worth $640 billion to more Treasury Secretary Lawrence sales of previously owned houses a referendum for a new question Libor fidelity back to 2007. assaulting a hotel maid. JUL 7 Eurozone financial for $10 billion, claiming “massive inequality and corporate greed. at Goldman Sachs and Procter than 500 Eurozone banks. Summers considers that such a rise 4%. JUN 21 Fifteen major banks “crowdsourced” constitution managers agree to S109 billion fraud” in mortgage-backed securities Known as Occupy Wall Street, the & Gamble, is indicted on insider series in the Financial Times would worldwide see their Moody’s ratings based on suggestions from social ($157 billion) in fresh financing to from Bank of America and its group describes itself as a leaderless trading charges. He is considered DEC 13 Another 200,000 new jobs have been unimaginable only five cut as a result of lower profits. JUL 11 Commodities brokerage media. Calls for a new constitution support Greece’s shaky economy. subsidiaries Countrywide and movement and stages a number of the highest profile yet of more than are created, better than expected. years prior, citing the influence Peregrine Financial files for came in response to the 2008 Merrill Lynch. marches and rallies. 20 senior financial sector executives The unemployment rate also of the Tea Party and Occupy JUN 25 Moody’s reduces credit bankruptcy after $200 million in collapse of the nation’s banking and 10,000 10,000 charged in a continuing probe. surprises, dipping to 8.5%. movements. ratings on more than two dozen client funds goes missing. financial systems. AUG 6 The SEC establishes a banks in Spain. 10000 NOV 5 The Group of 20 (G-20) JAN 9 The DJIA rises 3.4% in JUL 11 Home prices inch out a OCT 24 Former Goldman Sachs whistleblower hotline, offering rewards for leads that result in leading economies names the global January, which is an accurate gain in June as compared to June director Rajat Gupta is sentenced enforcement actions. “too big to fail” banks. Of the 29 predictor of the year three quarters 2011, the first such increase since to two years in federal prison for institutions, 17 are European, eight of the time. The S&P 500 gains 2007, indicating that the housing passing secret information to hedge are from the US and four are Asian. maket has turned. Still, new home AUG 6 London and other British 4.36%; the NASDAQ shoots up 8%. fund Galleon Group. sales fall. Dow Jones cities are wracked by rioting. More Dow Jones Dow Jones Dow Jones than 1,000 people are arrested. NOV 5 New home sales are higher JAN 13 Hostess Brands, maker of OCT 25 Federal attorneys bring Industrial Average by 1.6% over October, the highest Industrial Average Twinkies and Wonder Bread, files for Industrial Average JUL 19 Big firms cut staff, civil charges against Bank of Industrial Average 9000 gain since April 2010. Existing bankruptcy protection for the second including Bank of America, Citi, America and request $1 billion in AUG 9 Warren Buffett invests home sales rise 4%. Goldman Sachs and Credit Suisse. In $5 billion in Bank of America via time in 10 years. damages for misrepresenting the the past year, the six largest financial preferred shares and warrants. loans it made to Fannie Mae and NOV 7 After a firestorm of public firms have cut over 18,000 jobs. Freddie Mac. opposition, Bank of America and AUG 9 Rebels storm the compound other institutions abandon plans for JPMorgan Chase’s trading of Libyan dictator Moamar Gadhafi. JUL 20 OCT 27 UBS says it will trim monthly fees on debit cards. KEY TO COLORS IMPORTANT TERMS losses balloon as high as $9 billion, 10,000 jobs. say financial publications; the bank AUG 12 The FDIC reports banks NOV 7 Japanese camera company has only acknowledged $4 billion. increased the numbers of loans in 8000 AUSTERITY MEASURES — actions FISCAL CLIFF — a popular term for STRESS TEST — a means to Olympus admits $1.3 billion in CEO Dimon buys $17 million in the second quarter for the first time taken by governments to reduce the uncomfortable financial situation determine whether a bank is healthy payments to cover investment losses Investment companies, shares, trying to increase investor in three years; total lending revenue budget deficits, often during times that faced the US as the Budget and can weather an economic a month after firing British CEO rating agencies confidence. continues to drop, however. and banks of economic stress. Countries Control Act of 2011 was supposed downturn. Most importantly, stress Michael Woodford for digging into around the world enacted austerity to go into effect on January 1, 2013. testing measures whether banks have the accounts. measures beginning in 2009. It was The impending law was a result of the sufficient liquidity or capital. The JUL 25 On CNBC, Sandy Weill not uncommon for the introduction 2011 debt ceiling crisis, and it would Dodd-Frank Act mandates that the asserts that financial conglomerates NOV 10 From the time Bank of of austerity policies to be followed have resulted in higher taxes and fewer Federal Reserve conduct stress tests of should be dismantled. He was America and other banks announced the champion for overturning 7000 International developments by protests. Merriam-Webster Inc. benefits for most citizens in order to US banks annually, beginning in 2012. debit card fees until they dropped Depression-era rules that allowed named “austerity” its word of the reduce the national deficit. The fiscal TARP — an acronym for “Troubled the idea (about two months), year in 2010 for the number of user cliff was averted when Senate passed such megabanks to be created. 650,000 new credit union accounts Asset Relief Program,” which was lookups on its website. the American Taxpayer Relief Act of initiated as part of the Emergency were opened. Only 600,000 new 2012 on January 1, 2013. JUL 25 John Kinnucan pleads credit union accounts were opened DEBT CEILING — the limit to the Economic Stabilization Act, a law guilty to bribery and insider trading in all of 2010. Real estate amount of US national debt that the LIBOR — an acronym for the “London passed by Congress in 2008 to bail for passing illegally-acquired market Treasury is allowed to issue to meet Interbank Offer Rate,” an interest rate out financial institutions in the information to hedge fund the US’s existing financial obligations for lending between banks. Because wake of the financial crisis. From managers. He made the news 6000 (such as social security, government the Libor rate serves as a benchmark January 2008 to October 2010, the with his vitriolic refutation of contracts and defense spending). for short-term interest rates around US Treasury loaned $419 billion to investigators in 2010. Congress is responsible for setting the world, the manipulation of this troubled financial institutions. By Government actions this limit and can lift it via legislation. rate has far-reaching effects on March 2013, about 94% of TARP JUL 30 Facebook shares continue and statements Although the US reached its debt consumer financial products, such as loans, or $393 billion, had been to tumble, down 45% since the IPO. ceiling in 2011 and 2013, the US student loans, mortgages and financial recovered. Treasury has never defaulted. derivatives. In 2012, it was discovered VOLCKER RULE — a section of the DODD-FRANK ACT — President that Libor manipulation has been Dodd-Frank Act proposed by former 5000 Obama signed the Dodd-Frank common by London banks since the Federal Reserve Chairman, Paul DJIA and Wall Street Reform and Consumer early 1990s. Volcker, which bans US commercial economic indicators Protection Act into law in July 2010. banks from using deposits to trade on It was created in response to the their own accounts. 2008 credit crisis and is the most comprehensive financial reform 4000 instituted since the Great Depression. 3000

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