Subprime mortgage crisis/Timelines

The 1980s

Financial deregulation [1], [2].

Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [3]

1990 - 2003

Progressive discount rate cuts by Federal Reserve Bank (from 7% in 1990 t0 0.75% in 2003 [4].

Housing boom begins (8% increase 2002 to 2003)

1999

Fannie Mae eases credit terms for subprime loans [5]

2002

President sets target for expanding minority home-owning [6].

2003 - 2006

Progressive discount rate increases (from 0.75% to 6.25% in 2006).

Ben Bernanke, Chairman of the Council of Economic Advisers, advises that house price rises "largely reflect economic fundamentals"

Housing boom continues (Average 2006 house price about 70% above 2000 level)

2007

June

25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [7].

August

6 American Home Mortgage bankrupt [8].

9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [9]

2008

January

US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [10].

March

Bear Stearns bank rescued following losses relating to mortgage-related assets by its hedge funds. [11]

April

Global subprime crisis costs could reach $1 trillion (IMF estimate) [12].

IMF forecasts US recession and world growth slowdown [13].

June

US house prices 20% below 2006 peak [14].

August

Fannie Mae and Freddie Mac rescued [15].

September

7 Fannie Mae and Freddie Mac nationalised [16].

12 Lehman Brothers bankrupt[17] with losses of up to $160 billion to holders of its unsecured bonds.

'For further developments see crash of 2008 [18]'