2008 Financial Crisis

By jan_lt
  • Merrill Lynch goes public

    Merrill Lynch goes public

    Investment bank goes public
  • Period: to

    Investment banks go public

  • Donald Regan appointed as Secretary of Treasury

    Donald Regan appointed as Secretary of Treasury

    President Ronald Reagan appoints Donald Regan (former CEO of Merrill Lynch) as Secretary of Treasury

  • 30 year financial deregulation begins

    Appointment of Donald Regan as Secretary of Treasury induces a 30-year financial deregulation

  • Garn-St. Germain Depository Institutions Act

    Deregulation of savings and loans
  • Bear Stearns goes public

    Bear Stearns goes public

    Investment bank goes public
  • Morgan Stanley goes public

    Morgan Stanley goes public

    One of the major investment banks goes public
  • Alan Greenspan appointed as Chair of the Federal Reserve

    Alan Greenspan appointed as Chair of the Federal Reserve

    Deregulation continues
  • Period: to

    Alan Greenspan as Chair of Federal Reserve

    Deregulation
  • Period: to

    Investment banks gave high ratings to stocks that would fail

  • Period: to

    Derivatives become a popularised market

    Collaterized Debt Obligation (CDOs) and Credit Default Swaps (CDSs)
  • Bill Clinton elected president

    Bill Clinton elected president

    Deregulation continues
  • Period: to

    Bill Clinton Presidency

  • Robert Rubin as Director of National Economic Council

    Robert Rubin as Director of National Economic Council

    Robert Rubin (former CEO of Goldman Sachs) appointed the 1st Director of the National Economic Council
  • Lehman Brothers goes public

    Lehman Brothers goes public

    Major investment bank goes public.
  • Larry Summers appointed Deputy Secretary of Treasury

    Larry Summers appointed Deputy Secretary of Treasury

  • Period: to

    Larry Summers as Deputy Secretary of Treasury

    Deregulation continues
  • Period: to

    Freddie Mac and Fannie Mae overstate earnings

  • CFTC attempt to regulate derivatives

    CFTC attempt to regulate derivatives

    Brooksley E. Born, CFTC chairperson lobbied Congress and President to give CFTC oversight over derivatives
  • Citigroup was formed

    Citigroup was formed

    Citicorp and Travelers merge which violated Glass-Steagall Act
  • Goldman Sachs goes public

    Goldman Sachs goes public

    One of the major investment banks goes public

  • Gramm-Leach-Bliley Act

    Citigroup exemption act and gave way for other mergers

  • Commodity Futures Modernization Act

    regulation of derivatives banned
  • Period: to

    US Housing Boom

  • Period: to

    Mini Financial Crash

  • George W. Bush elected President

    George W. Bush elected President

  • Key companies in Financial Sector

    Investment Banks - Goldman Sachs, Merrill Lynch, Bear Stearns, Morgan Stanley, Lehman Brothers
    Financial Conglomerates - Citigroup, JP Morgan
    Securities Insurance Companies - AIG, MBIA, AMBAC
    Rating Agencies - Moody's, Standard and Poor's, Fitch
  • Period: to

    George Bush Presidency

  • Henry Paulson SEC leverage limit

    Henry Paulson SEC leverage limit

    Henry Paulson (CEO of Goldman Sachs) lobbied SEC to relax leverage limit

  • SEC ammends leverage rule

  • Ben Bernanke as Chairman of Federal Reserve

    Ben Bernanke as Chairman of Federal Reserve

  • Bear Stearns acquired by JP Morgan

    Bear Stearns run out of cash and are acquired by JP Morgan, which was backed by the Federal Reserve

  • Federal takeover of Fannie Mae and Freddie Mac

  • Lehman Brothers bankruptcy

  • AIG collapse

    AIG collapse

  • Joint statement against regulation of derivatives

    Adam Greenspan, Robert Rubin and SEC chariman, Arthur Levitt release joint statement to recommend legislation to not regulate derivatives