Monday, August 10, 2009

Timeline of Financial Bailout of 2008


Day
Date
Action
Q3-Q4: 2007
Subprime mortgage meltdown begins
Fri.
30-May-08
JP Morgan completes acquisition of Bear Stearns
Sun.
7-Sep-08
U.S. Treasury seizes control of Fannie Mae and Freddie Mac, government-sponsored mortgage guarantors
Sun.
14-Sep-08
Bank of America agrees to buy Merrill Lynch under terms set by the US Fed
Mon.
15-Sep-08
Lehman Brothers files for bankruptcy
Tues.
16-Sep-08
Treasury agrees to loan $85 billion to A.I.G.; takes control
Wed.
17-Sep-08
Treasury/Fed worry about runs on money markets and investment banks
Thurs.
18-Sep-08
Paulson and Bernanke present 3-page plan to Congressional leaders
Sun.
21-Sep-08
Morgan Stanley and Goldman Sachs become regulated bank holding companies, ending era of Investment Banking
Wed.
24-Sep-08
Economists submit letter in opposition to the original Paulson Plan, claiming it is unfair, ambiguous and short-sighted
Thurs.
25-Sep-08
Regulators seize Washington Mutual Saving and Loan and arrange sale to JP Morgan Chase
Sun.
28-Sep-08
First draft of Emergency Economic Stabilization Act of 2008 (HR 3997)
Mon.
29-Sep-08
HR 3997 fails to pass the U.S. House
Wed.
1-Oct-08
Senate passes HR 1424, a modified version of the bill
Fri.
3-Oct-08
Congress passes HR 1424 and President G.W. Bush signs it into law
Week ending 10/10
Dow Jones loses 18% of value in one week. Iceland seizes its banks. Britain proposes direct investment in banks
Sat.
11-Oct-08
G7 finance ministers, then Group of 20 meet at White House to coordinate policy
Mon.
13-Oct-08
Paulson and Bernanke meet with leaders of 9 largest banks. Get agreement on direct infusion of cash
Mon.
10-Nov-08
AIG bailout restructured to include $60 billion loan from US Federal Reserve, $40 billion in securities purchased by US Treasury, and credit lines of up to $30 billion backed by Credit Default Swaps and $22.5 billion against mortgage-backed securities



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