Subprime mortgage crisis/Timelines
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to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in Fools Gold by Gillian Tett (see the bibliography subpage).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 - 2003
- Progressive discount rate cuts by Federal Reserve (from 7% in 1990 to 0.75% in 2003 [4].
- Housing boom begins (8% increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime mortgages [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).
- Housing boom continues [7] (Average 2006 house price about 70% above 2000 level)
2007
June
25 Two of the Bear Stearns bank's hedge funds are threatened by losses from mortgage defaults [8].
August
6 American Home Mortgage becomes bankrupt [9].
9 French bank BNP Paribas freezes some of its funds because it is unable to value its US mortgage-backed assets. [10]
2008
January
Distress sale of US mortgage lender Countrywide to the Bank of America bank (after its share price had dropped by 48%). [11].
March
Bear Stearns bank rescued following losses relating to mortgage-related assets by its hedge funds. [12]
April
The global subprime crisis costs could reach $1 trillion (IMF estimate) [13].
The IMF forecasts US recession and world growth slowdown [14].
June
US house prices 20% below 2006 peak [15].
August
Fannie Mae and Freddie Mac rescued [16].
September
7 Fannie Mae and Freddie Mac nationalised [17].
12 Lehman Brothers bankrupt[18] with losses of up to $160 billion to holders of its unsecured bonds.
'For further developments see crash of 2008 [19]'