Great Recession/Timelines: Difference between revisions
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==2009== | ==2009== | ||
=== | ===January=== | ||
* 19 UK '' Asset Protection Scheme'' [http://www.hm-treasury.gov.uk/press_07_09.htm] protection against credit losses in return for a fee. | |||
* | |||
===February=== | |||
* The ''American Recovery and Reinvestment Act''(H.R. 1) | * 9 The US ''Financial Stability Plan''[http://www.financialstability.gov/docs/fact-sheet.pdf] - including stress tests and capital assistance for major banks, a $500-1000 billion ''Public-Private Investment Fund''[http://www.ustreas.gov/press/releases/tg65.htm], consumer and business lending and housing support. | ||
* 13. The ''American Recovery and Reinvestment Act''(H.R. 1) [http://www.recovery.gov/About/Pages/The_Act.aspx]) - a $839 billion stimulus package including $288 billion in tax cuts and benefits, $224 billion in increased education and health spending, and a $275 billion for contracts, grants and loans. | |||
===March=== | |||
* 3 The ''Term Asset-backed Loan Facility ''[http://www.federalreserve.gov/monetarypolicy/20090303a.htm]. | |||
===April=== | |||
===May=== | |||
===June=== | |||
===July=== | |||
===August=== | |||
===September=== | |||
===October=== | |||
===November=== | |||
===December=== | |||
==2010== | |||
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====Europe==== | ====Europe==== | ||
Revision as of 08:39, 9 March 2010
The 1980s
- Financial deregulation [1], [2].
- The US 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].
- The United States housing boom begins (prices rise by 8% between 2002 and 2003)
2003 - 2006
- The Federal Reserve Bank makes a series of discount rate increases (from 0.75% to 6.25% in 2006).
- The US housing boom continues [5] (Average 2006 house price about 70% above 2000 level)
2007
June
- 25 Two of the Bear Stearns Bank's suffer losses from mortgage defaults [6].
August
- 6 The American Home Mortgage Corporationgoes bankrupt [7].
- 9 The French bank BNP Paribas freezes its funds because it is unable to value their mortgage-backed assets. [8]
- 13 BBC's Robert Peston reports that the Northern Rock bank was seeking help from the Bank of England.
The Northern Rock bank suffers a bank run [9]
2008
January
- The US mortgage lender Countrywide is sold to Bank of America after its share price drops by 48% [10].
February
- The British Northern Rock bank is "nationalised [11].
March
- The US Bear Stearns bank is rescued following losses relating to mortgage-related assets by its hedge funds. [12]
April
- Bank of England announces its Special Liquidity Scheme to allow banks to swap some of their illiquid assets for liquid Treasury Bills for up to three years [13].
June
- US house prices fall to 20% below their 2006 peak [14].
August
- The government-sponsored mortgage lenders Fannie Mae and Freddie Mac are rescued [15].
September
- 7 Fannie Mae and Freddie Mac are nationalised [16].
- 12 The Lehman Brothers investment bankgoes bankrupt[17] with losses of up to $160 billion to holders of its unsecured bonds prompting a sudden loss of confidence in Money market funds and the onset of a credit crunch.
October
- 3 The (modified) $700 billion Paulson Plan (to purchase toxic assets) approved by Congress [18].
- The Dutch Fortis and ABN Amro banks are "nationalised" [19]. The German Hypo Real Estate bank is rescued [20].
- Iceland suffers an economic crisis [21].
- 6 The US Wachovia Corporation is to be rescued by a takeover by the Wells Fargo bank [22].
- 7 More European bank rescues [23].
- 8 UK Chancellor of the Exchequer Gordon Brown announces a £500 billion UK rescue plan to inject capital or take equity in banks and to guarantee interbank lending) [24] [25].
- A coordinated discount rate cut of half per cent by the central banks of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [26].
- 10 LIBOR-OIS spreads reach over 350 basis points (compared with August 2007 rates of around 10 points)[27].
- 12 European Union leaders agree to adopt the UK rescue plan[28].
- 14 US President Bush announces new plans to inject capital, take equity in banks and guarantee interbank lending [29].
- 19 A German bank rescue package is agreed [30].
- 21 The US Federal Reserve Bank offers $540 billion loan support to money market mutual funds [31].
- 25 Denmark's Roskilde is bank to be taken over by its central bank [32].
November
- 23 The US Citigroup bank is rescued (the US government makes $20 billion cash injection and guarantees against loss on $306 billion of illiquid assets [33] [34] [35][36]
- The US Federal Reserve Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [37].
December
- 16 The US Federal Reserve Bank begins credit easing - open market operations raise the amount of base money from $0.9 trillion to $2.2 trillion [38]
2009
January
- 19 UK Asset Protection Scheme [39] protection against credit losses in return for a fee.
February
- 9 The US Financial Stability Plan[40] - including stress tests and capital assistance for major banks, a $500-1000 billion Public-Private Investment Fund[41], consumer and business lending and housing support.
- 13. The American Recovery and Reinvestment Act(H.R. 1) [42]) - a $839 billion stimulus package including $288 billion in tax cuts and benefits, $224 billion in increased education and health spending, and a $275 billion for contracts, grants and loans.
March
- 3 The Term Asset-backed Loan Facility [43].