Bank failures and rescues/Timelines: Difference between revisions

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'''A chronology of bank failures and rescues'''
==Before WW1== 
===United States===
Bank runs occur in 1793,  1797, 1810, 1815, 1819, 1825, 1833, 1837, 1839, 1847, 1857, 1873, 1884, 1890, 1893, and 1907 [http://research.stlouisfed.org/publications/regional/96/07/Learning.pdf] [http://research.stlouisfed.org/publications/review/89/05/Remedies_May_Jun1989.pdf].
1914 Federal Reserve Bank created [http://www.federalreserve.gov/aboutthefed/fract.htm].
===United Kingdom===
1866 Overend-Gurney collapse causes banking panic [http://www.ehs.org.uk/ehs/conference2003/assets/Taylor.doc]
1890 Barings crisis.  Bank of England organises rescue of Barings bank by Rothschilds
==The inter-war years==
=== US bank failure statistics===
:{|class = "wikitable"
!Year
!1925
!1926
!1927
!1928
!1929
!1930
!1931
!1932
!1933
!1934
!1935/40 average
|-
|Number of bank suspensions
|618
|976
|669
|488
|659
|1350
|2293
|1453
|4000
|57
|40
|}
::(Source Federal Reserve Bank of St Louis [http://fraser.stlouisfed.org/publications/bms/issue/61/download/127/section7.pdf].)
===1929===
[[Crash of 1929]] and the start of the [[Great Depression]]
===1930===
First banking crisis.
===1931===
Second banking crisis
Austria's Creditanstalt Bank failure and the European banking crisis [http://www.time.com/time/magazine/article/0,9171,816703,00.html].
===1932===
Chicago banking panic
===1933===
US "banking holiday".
Federal Deposit Insurance Corporation Created [http://www.fdic.gov/about/history/index.html].
==1940 to 2007==
( '''(S)''' denotes a crisis that is classed as ''systemic'' on the World Bank database of banking crises [http://www1.worldbank.org/finance/html/database_sfd.html])
===The 1970s===
1974 German Herstatt bank failure
:UK Secondary banking crisis.
1977 Banking crises in Israel '''(S)''' and Spain '''(S)'''.
===The 1980s===
US Savings and Loans crisis - Failure of 296 US "''Savings and Loans''" mortgage lenders [http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf]
1981 Mexican banking crisis '''(S)''' [http://www.bis.org/publ/bppdf/bispap28s.pdf].
1982 Banking crises in Singapore '''(S)''' and Turkey '''(S)'''.
1984 80 US bank failures
:US Continental Illinois bank rescue [http://www.erisk.com/Learning/CaseStudies/ContinentalIllinois.asp] [http://fic.wharton.upenn.edu/fic/case%20studies/continental%20full.pdf]. The "too big to fail" doctrine [http://www.newyorkfed.org/research/staff_reports/sr220.pdf].
:UK Johnson Matthey bank  failure.
1985 120 US bank failures.
1987  Danish banking crisis.
1988 Norwegian banking crisis starts [http://www.norges-bank.no/upload/import/publikasjoner/skriftserie/33/chapter1.pdf].
===The 1990s===
The decade:
::Failure of a further 451 US "Savings and Loans" mortgage lenders.
1990 Bank of New England failure [http://www.fdic.gov/bank/historical/managing/history2-08.pdf].
:Banking crises in China '''(S)''' and Italy '''(S)'''.
1991 Banking crises in Germany, Finland '''(S)''' and  Japan '''(S)'''.
:UK Bank of Credit and Commerce International failure [http://www.fas.org/irp/congress/1992_rpt/bcci/].
1994 Banking crises in Australia '''(S)''' , France, Brazil '''(S)'''  and Mexico '''(S)'''.
:Japanese credit cooperatives Tokyo Kyowa and Anzen fail.
1995 UK Barings bank failure [http://spot.colorado.edu/~kaplan/econ4111/section8-Barings.html].
1996 Jamaican banking crisis '''(S)'''.
1997 The beginning of the Asian banking crisis '''(S)''' [http://www.eastwestcenter.org/fileadmin/stored/pdfs/api078.pdf].
1998 US Long Term Capital Management hedge fund  rescue [http://www.treasury.gov/press/releases/reports/hedgfund.pdf]
===Early 2000s===
2001 Argentinian banking crisis '''(S)'''.
==2007==
====The year 2007====
: The bursting of the United States housing bubble and the development there of the [[subprime mortgages crisis]].
====June====
:25 Two Bear Stearns ''hedge funds'' threatened by losses from mortgage defaults [http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms].
====August====
:2 German IKB bank rescue [http://www.ft.com/cms/s/0/7017b0c0-411a-11dc-8f37-0000779fd2ac.html]
:6 American Home Mortgage bankrupt [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece].
:9 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]
====September====
:UK Northern Rock bank run [http://news.bbc.co.uk/1/hi/business/6996136.stm]
==2008==
====January====
:US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [http://news.bbc.co.uk/1/hi/business/7183221.stm].
====February====
:Northern Rock bank nationalised[http://news.bbc.co.uk/1/hi/business/7249575.stm].
====March====
:Bear Stearns rescued [http://www.reuters.com/article/topNews/idUSN1438968020080315]
====August====
: ''Fannie Mae'' and ''Freddie Mac'' rescued [http://nreionline.com/property/multifamily/real_estate_senate_okays_fannie/].
====September====
:7  ''Fannie Mae'' and ''Freddie Mac'' nationalised [http://www.foxbusiness.com/story/markets/government-seied-fannie-mae-freddie-mac/].
:12 Lehman Brothers  bankrupt [http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] with losses of $365 billion to insurers of its bonds.
:15 Merrill Lynch sold to Bank of America after major capital write-downs [http://news.bbc.co.uk/2/hi/business/7616068.stm].
:17 American Insurance Group nationalised [http://money.cnn.com/2008/09/16/news/companies/AIG/?postversion=2008091710].
:UK's Halifax/Bank of Scotland (HBOS) accepts rescue  bid from Lloyds TSB [http://news.bbc.co.uk/1/hi/business/7622380.stm].
:18 Paulson Rescue plan proposed (US Treasury  scheme to take "toxic assets" out of the US banking system) [http://www.ft.com/cms/s/0/33d2214e-8968-11dd-8371-0000779fd18c.html]
:23 Federal Reserve Bank protects Goldman Sachs and Morgan Stanley  banks[http://www.ft.com/cms/s/0/3119223e-8906-11dd-a179-0000779fd18c.html].
:26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [http://news.bbc.co.uk/1/hi/business/7637026.stm].
:28  UK bank Bradford and Bingley nationalised [http://news.bbc.co.uk/2/hi/business/7640143.stm].
:: Multiple European bank rescues [http://uk.news.yahoo.com/rtrs/20080929/tbs-uk-fortis-7318940.html].
:30 Icelandic Glitnir bank nationalised [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4849302.ece].
====October====
:3 Modified  [[Paulson Plan]] (to purchase toxic assets) approved by Congress [http://news.bbc.co.uk/1/hi/world/americas/7651761.stm].
::Dutch Fortis and ABN Amro banks nationalised [http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html].
:: German Hypo Real Estate bank rescued [http://www.dw-world.de/dw/article/0,2144,3692522,00.html]
:: Icelandic economic crisis [http://news.bbc.co.uk/1/hi/business/7653750.stm].
:6 US Wachovia Corp rescued [http://www.dw-world.de/dw/article/0,2144,3692522,00.html].
:8  UK rescue plan (to inject capital, take equity in banks and guarantee interbank lending) [http://news.bbc.co.uk/1/hi/business/7658307.stm] [http://news.bbc.co.uk/1/hi/business/7658277.stm].
:10 G7 Action Plan agreed in general terms  by finance ministers [http://ap.google.com/article/ALeqM5gP-2pLnZlGnXKz5FDPQ6OTe-AM-QD93O5DEG0].
:12  EU leaders adopt UK rescue plan'  :[http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story].
:13 UK government to take equity in Royal Bank of Scotland, Lloyds TSB and Halifax/Bank of Scotland [http://news.bbc.co.uk/1/hi/business/7666570.stm][http://www.hm-treasury.gov.uk/statement_chx_131008.htm].
:14 President Bush announces new plans (to inject capital, take equity in banks and guarantee interbank lending)  [http://www.whitehouse.gov/news/releases/2008/10/20081014.html].
::US government to take equity in Bank of America, J P Morgan Chase, Citigroup, Morgan Stanley, & Goldman Sachs.
:16 UBS rescue by £30 bn from Swiss government [http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3210621/UBS-Swiss-government-comes-to-rescue-of-proud-industry.html].
:23 Federal Reserve Bank provides $540 billion support for money market funds.
:: German bank BayernLLB seeks $7 billion aid
:: French government provides $14 billion aid to BNP Paribas, Credit Agricole and 4 other banks.
:: Swedish government announces $200 billion rescue proposal.
:: Dutch ING bank gets $13 billion government lifeline.
===November===
===November===


Revision as of 07:50, 1 December 2008

November

23 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 [1].
US government makes $20 billion cash injection into Citigroup bank and guarantees against loss on $306 billion of iliquid assets [2] [3] [4][5]
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