Subprime mortgage crisis/Timelines: Difference between revisions

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'''Savings and Loans crisis''' - Failure of 296 US "''Savings and Loans''" [[mortgage]] lenders [http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf]
'''Savings and Loans crisis''' - Failure of 296 US "''Savings and Loans''" [[mortgage]] lenders [http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf]


==1990 - 2003==
==1990 - 2007==
:Progressive '''[[discount rate]] cuts''' by [[Federal Reserve System|Federal Reserve]] (from 7% in 1990 to 0.75% in 2003 [http://www.the-privateer.com/rates.html].


: '''Housing boom begins''' (8% increase 2002 to 2003)
:1990 to 2003
::Progressive [[discount rate]] reductions  by [[Federal Reserve System|Federal Reserve]] (reducing the federal funds rate from from 8 per cent in 1990 to 1 per cent in 2003 [http://www.the-privateer.com/rates.html].


===1999===
:: Housing boom begins (8% price increase 2002 to 2003)
[[Fannie Mae]] eases credit terms for [[subprime mortgage]]s  [http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1]


===2002===
:1999
President sets target for expanding minority home-owning [http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html].
::[[Fannie Mae]] eases credit terms for [[subprime mortgage]]s  [http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1]


== 2003 - 2006==
:2002
::President sets target for expanding minority home-owning [http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html].


: Progressive '''discount rate increases '''(from 0.75% to 6.25% in 2006).
: 2001 to Q3 2006
::A US housing boom  in which the average price rises by 80% [http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_History_102626.xls] .


:'''Housing boom continues '''[http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112766.pdf] (Average 2006 house price about 70% above 2000 level)
: 2003 to 2006
:: : The Federal Reserve makes a series of [[discount rate]] increases (increasing the federal funds rate from 1 per cent in 2003 to 5.25 per cent in 2006)[http://www.harpfinancial.com/InterestRateHistory/FederalFundsRate.htm].
 
: Q3 2006 to Q2  2007
:: US house prices fall to 8% below 2006 peak ()[http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm].
 
:: US mortgage foreclosures surge [http://realestate.msn.com/buying/articlenewhome.aspx?cp-documentid=340866] [http://news.bbc.co.uk/1/hi/business/7073131.stm].
 
:: The values of  bank assets suffer large reductions  (including the assets of the ''Bank of America'' and ''Citigroup'' banks in the US, the ''Barclays'' and ''HSBC'' banks in the UK, the ''BNP Paribas'' bank in France, and ''Credit Suisse'' bank in Switzerland.


==2007==
==2007==
===June===
===June===
25 Two of the ''Bear Stearns'' bank's [[hedge fund]]s are threatened by losses from [[mortgage]] [[default (finance)|defaults]] [http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms].
25 Two of the ''Bear Stearns'' bank's [[hedge fund]]s are threatened by losses from [[mortgage]] [[default (finance)|defaults]] [http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms].


===August===
===August===
6 ''American Home Mortgage'' becomes [[bankruptcy|bankrupt]] [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece].
6 ''American Home Mortgage'' becomes [[bankruptcy|bankrupt]] [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece].


9 French bank ''BNP Paribas'' freezes some of its funds because it is unable to value its US mortgage-backed [[asset (finance)|assets]]. [http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV]
9 French bank ''BNP Paribas'' freezes some of its funds because it is unable to value its US mortgage-backed [[asset (finance)|assets]]. [http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV]


==2008==
''''For further developments see [[crash of 2008/Timelines| the crash of 2008 timelines]]
 
===January===
 
[[Distress sale]] of US mortgage lender ''Countrywide''  to the ''Bank of America'' bank (after its share price had dropped  by 48%). [http://news.bbc.co.uk/1/hi/business/7183221.stm].
 
===March===
 
The''Bear Stearns'' [[investment bank]] is  rescued from [[bankruptcy]] following losses relating to  mortgage-related [[asset (finance)|assets]]  by its [[hedge fund]]s. [http://www.reuters.com/article/topNews/idUSN1438968020080315]
 
===April===
 
The global subprime crisis costs could reach $1 trillion ([[International Monetary Fund|IMF]] estimate) [http://www.iht.com/articles/2008/04/08/business/imf.php].
 
The [[International Monetary Fund|IMF]] forecasts US [[recession]] and world growth slowdown [http://news.bbc.co.uk/1/hi/business/7338326.stm].
 
===June===
 
US house prices 20% below 2006 peak [http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,2,1,0,0,0,0,0.html].
 
===August===
 
Mortgage lenders [[Fannie Mae]] and [[Freddie Mac]] are rescued from [[bankruptcy]] [http://nreionline.com/property/multifamily/real_estate_senate_okays_fannie/].
 
===September===
 
7  Fannie Mae and Freddie Mac  are nationalised '''[http://www.foxbusiness.com/story/markets/government-seied-fannie-mae-freddie-mac/].
 
12 The ''Lehman Brothers'' [[investment bank]] becomes [[bankruptcy|bankrupt]] [http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] with losses of up to $160 billion to holders of its unsecured [[bond]]s.
 
 
 
''''For further developments see [[crash of 2008]] [http://en.citizendium.org/wiki/Crash_of_2008/Timelines#June]''''

Latest revision as of 03:09, 27 October 2013

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https://en.citizendium.org/wiki/index.php?title=Subprime_mortgage_crisis/Timelines&printable=yes
A timeline (or several) relating to Subprime mortgage crisis.

Sources

In addition to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in Fools Gold by Gillian Tett (see the bibliography subpage). Numbers shown thus {123} are the relevant page numbers in that book.

The 1980s

Financial deregulation [1], [2].

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

1990 - 2007

1990 to 2003
Progressive discount rate reductions by Federal Reserve (reducing the federal funds rate from from 8 per cent in 1990 to 1 per cent in 2003 [4].
Housing boom begins (8% price increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime mortgages [5]
2002
President sets target for expanding minority home-owning [6].
2001 to Q3 2006
A US housing boom in which the average price rises by 80% [7] .
2003 to 2006
: The Federal Reserve makes a series of discount rate increases (increasing the federal funds rate from 1 per cent in 2003 to 5.25 per cent in 2006)[8].
Q3 2006 to Q2 2007
US house prices fall to 8% below 2006 peak ()[9].
US mortgage foreclosures surge [10] [11].
The values of bank assets suffer large reductions (including the assets of the Bank of America and Citigroup banks in the US, the Barclays and HSBC banks in the UK, the BNP Paribas bank in France, and Credit Suisse bank in Switzerland.

2007

June

25 Two of the Bear Stearns bank's hedge funds are threatened by losses from mortgage defaults [12].

August

6 American Home Mortgage becomes bankrupt [13].

9 French bank BNP Paribas freezes some of its funds because it is unable to value its US mortgage-backed assets. [14]

'For further developments see the crash of 2008 timelines

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