Key Events In Financial Crisis

By lyons.465

  • Mortgage giant Freddie Mac says it will no longer buy the most risky subprime loans.

    Mortgage giant Freddie Mac says it will no longer buy the most risky subprime loans.

  • Subprime mortgage lender New Century Financial files for bankruptcy-court protection.

    Subprime mortgage lender New Century Financial files for bankruptcy-court protection.

  • Investment bank Bear Stearns liquidates two hedge funds that invested in risky securities backed by subprime mortgage loans.

    Investment bank Bear Stearns liquidates two hedge funds that invested in risky securities backed by subprime mortgage loans.

  • The U.S. economy is in recession. The crisis in subprime mortgages infects the credit markets.

    The U.S. economy is in recession. The crisis in subprime mortgages infects the credit markets.

  • Bank of America agrees to buy Countrywide Financial for about $4 billion.

    Bank of America agrees to buy Countrywide Financial for about $4 billion.

  • The Federal Reserve agrees to guarantee $30 billion of Bear Stearns' assets in connection with the government-sponsored sale of the investment bank to JPMorgan Chase.

    The Federal Reserve agrees to guarantee $30 billion of Bear Stearns' assets in connection with the government-sponsored sale of the investment bank to JPMorgan Chase.

  • Federal regulators seize IndyMac Federal Bank after it becomes the largest regulated thrift to fail.

    Federal regulators seize IndyMac Federal Bank after it becomes the largest regulated thrift to fail.

  • Mortgage giants Fannie Mae and Freddie Mac are taken over by the government.

    Mortgage giants Fannie Mae and Freddie Mac are taken over by the government.

  • Lehman Brothers files for bankruptcy-court protection.

    Lehman Brothers files for bankruptcy-court protection.

  • Bank of America agrees to purchase Merrill Lynch for $50 billion.

    Bank of America agrees to purchase Merrill Lynch for $50 billion.

  • American International Group, the world's largest insurer, accepts an $85 billion federal bailout that gives the government a 79.9% stake in the company.

    American International Group, the world's largest insurer, accepts an $85 billion federal bailout that gives the government a 79.9% stake in the company.

  • Goldman Sachs and Morgan Stanley, the last two independent investment banks, will become bank holding companies subject to greater regulation by the Federal Reserve.

    Goldman Sachs and Morgan Stanley, the last two independent investment banks, will become bank holding companies subject to greater regulation by the Federal Reserve.

  • Congress passes a revised version of TARP and President Bush signs it. Wells Fargo & Co., the biggest U.S. bank on the West Coast, agrees to buy Wachovia for about $14.8 billion.

    Congress passes a revised version of TARP and President Bush signs it. Wells Fargo & Co., the biggest U.S. bank on the West Coast, agrees to buy Wachovia for about $14.8 billion.

  • The U.S. Treasury authorizes loans of up to $13.4 billion for General Motors and $4.0 billion for Chrysler from TARP.

    The U.S. Treasury authorizes loans of up to $13.4 billion for General Motors and $4.0 billion for Chrysler from TARP.