Banking/Timelines: Difference between revisions
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imported>Nick Gardner |
imported>Nick Gardner |
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2007 | 2007 | ||
: French bank BNP Paribas freezes funds because it is unable to value its US mortgage-backed assets. [http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV] triggering a collapse of the [[interbank market]] [http://www.gata.org/node/5802]. | : 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 house mortgage payment defaults and foreclosures [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. | |||
: The French bank ''BNP Paribas'' freezes funds because it is unable to value its US mortgage-backed assets. [http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV] triggering a collapse of the [[interbank market]] [http://www.gata.org/node/5802]. | |||
2008 | :[[Crash of 2008|International financial panic]] | ||
2008 | |||
March | March | ||
:The Bear Stearns investment bank is bought by J P Morgan Chase & Co for $2 a share[http://www.marketwatch.com/story/jp-morgan-to-buy-bear-stearns-for-2-a-share] [http://www.reuters.com/article/topNews/idUSN1438968020080315] (with $30 billion support from the Federal Reserve). | :The ''Bear Stearns'' investment bank is bought by J P Morgan Chase & Co for $2 a share[http://www.marketwatch.com/story/jp-morgan-to-buy-bear-stearns-for-2-a-share] [http://www.reuters.com/article/topNews/idUSN1438968020080315] (with $30 billion support from the Federal Reserve). | ||
April | April | ||
:The Bank of England announces its Special Liquidity Scheme[http://www.bankofengland.co.uk/publications/news/2008/029.htm] (to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills) | :The Bank of England announces its Special Liquidity Scheme[http://www.bankofengland.co.uk/publications/news/2008/029.htm] (to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills) | ||
September | September | ||
: The ''Lehman Brothers '' investment bank is bankrupt [http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] with losses of $365 billion to insurers of its bonds. | : The ''Lehman Brothers '' investment bank is bankrupt [http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] with losses of $365 billion to insurers of its bonds. | ||
:[[Money market]] confidence collapses: [[LIBOR]]-[[OIS]] [[spreads]] rise to over 200 [[basis point]]s (compared with pre-crisis rates of around 10 points)[http://research.stlouisfed.org/publications/es/08/ES0825.pdf] | |||
:[[ | : [[Recession of 2009|Global banking crisis]] and recession | ||
October | |||
: 3 The $700 billion [[Paulson Plan]] (Toxic Assets Relief Plan, TARP) is approved by Congress [http://news.bbc.co.uk/1/hi/world/americas/7651761.stm]. | |||
2009 | 2009 | ||
February | February | ||
:UK Banking Act 2009[http://www.opsi.gov.uk/acts/acts2009/pdf/ukpga_20090001_en.pdf] (including the Special Resolution Regime[[http://www.hm-treasury.gov.uk/bankingact09_buildingsocieties_order.htm] | :The UK Banking Act 2009[http://www.opsi.gov.uk/acts/acts2009/pdf/ukpga_20090001_en.pdf] (including the Special Resolution Regime[[http://www.hm-treasury.gov.uk/bankingact09_buildingsocieties_order.htm] | ||
March | |||
: The Federal Reserve Board announces its "Term Asset-backed Loan Facility" (TALF)[http://www.federalreserve.gov/monetarypolicy/20090303a.htm]. | |||
: The Federal Reserve Board plans to increase the size of its balance sheet to a total of up to $200 billion. [http://www.federalreserve.gov/newsevents/press/monetary/20090318a.htm] | |||
July | July | ||
: "Basel 3": Enhancements to the Basel II framework[http://www.bis.org/press/p090713.htm][http://www.bis.org/publ/bcbs157.pdf?noframes=1] | : "Basel 3": Enhancements to the Basel II framework[http://www.bis.org/press/p090713.htm][http://www.bis.org/publ/bcbs157.pdf?noframes=1] | ||
| Line 82: | Line 91: | ||
2010 | 2010 | ||
January | January | ||
: President Obama proposes the introduction of the "Volcker Rule". | : President Obama proposes the introduction of the "Volcker Rule"<ref>[http://www.whitehouse.gov/the-press-office/remarks-president-financial-reform ''Remarks by the President on Financial Reform'', Office of the Press Secretary, The White House, Jan 21 2010]</ref>. | ||
. | |||
Revision as of 05:26, 29 January 2010
The early years
1244 Genoa's Leccacorvo bank[1]
1609 Amsterdam Wisselbank founded[2] - the first central bank.
1694 Formation of the Bank of England[3]
The 19th century
1833 (UK) Repeal of the Usury Laws
1844 UK Bank Charter Act[4] - gives the Bank of England the exclusive right to issue banknotes
1863 US National Bank Act[5][6] - creates a national currency system and sets reserve ratio requirements for state and federal banks.
1866 UK:The Overend-Gurney collapse causes banking panic [7]
1890 UK: The Barings crisis. Bank of England organises rescue of Barings bank by Rothschilds[8] - and becomes the banking system's lender of last resort
1850-1907 US: Bank runs in 1857, 1873, 1884, 1890, 1893, (and 1907} [9]
The 20th century
1913 US National Reserve Act creates the Federal Reserve System
1930-33 The Banking crises of the Great Depression
1933 The Banking Act of 1933 creates The Federal Deposit Insurance Corporation[10]
- US The Glass-Steagall Act [11]
1980 US Depository Institutions Deregulation and Monetary Control Act[12]
1986 UK Building Societies Act[13]
1988 Basel I[14] (The Basel Capital Accord)
1989 US Financial Institutions Reform, Recovery, and Enforcement Act[15]
1995 UK Barings bank failure [16].
1995 :Basel II [17] (Revised International Capital Framework)
1999 US Gramm-Leach-Bliley Act[18] - repealed the Glass Steagall Act of 1933, and introduced other changes including expanding the Federal Home Loan Bank System.
The 21st century
2002
- US Sarbanes-Oxley Act[[19]
2005
2007
- US house prices fall to 8% below 2006 peak [20].
- US house mortgage payment defaults and foreclosures [21].
- 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.
- The French bank BNP Paribas freezes funds because it is unable to value its US mortgage-backed assets. [22] triggering a collapse of the interbank market [23].
2008
March
- The Bear Stearns investment bank is bought by J P Morgan Chase & Co for $2 a share[24] [25] (with $30 billion support from the Federal Reserve).
April
- The Bank of England announces its Special Liquidity Scheme[26] (to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills)
September
- The Lehman Brothers investment bank is bankrupt [27] with losses of $365 billion to insurers of its bonds.
- Money market confidence collapses: LIBOR-OIS spreads rise to over 200 basis points (compared with pre-crisis rates of around 10 points)[28]
- Global banking crisis and recession
October
- 3 The $700 billion Paulson Plan (Toxic Assets Relief Plan, TARP) is approved by Congress [29].
2009
February
March
- The Federal Reserve Board announces its "Term Asset-backed Loan Facility" (TALF)[32].
- The Federal Reserve Board plans to increase the size of its balance sheet to a total of up to $200 billion. [33]
July
November
- Lloyds Banking Group issues a contingent convertible bond[36].
December
- Basel Committee consultative proposals[[37]
2010
January
- President Obama proposes the introduction of the "Volcker Rule"[1].
.