Subprime mortgage crisis/Timelines: Difference between revisions
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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] | 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] | ||
==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] | |||
===April=== | |||
Global subprime crisis costs could reach $1 trillion (IMF estimate) [http://www.iht.com/articles/2008/04/08/business/imf.php]. | |||
'''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=== | |||
''' ''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 up to $160 billion to holders of its unsecured bonds. | |||
Revision as of 11:35, 10 October 2008
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 Bank (from 7% in 1990 t0 0.75% in 2003 [4].
- Housing boom begins (8% increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime loans [5]
2003 - 2006
- Progressive discount rate increases (from 0.75% to 6.25% in 2006).
- Housing boom continues (Average 2006 house price about 70% above 200 level)
2007
June
25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [6].
August
6 American Home Mortgage bankrupt [7].
9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [8]
2008
January
US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [9].
February
Northern Rock bank nationalised[10].
March
Bear Stearns rescued [11]
April
Global subprime crisis costs could reach $1 trillion (IMF estimate) [12].
IMF forecasts US recession and world growth slowdown [13].
June
US house prices 20% below 2006 peak [14].
August
Fannie Mae and Freddie Mac rescued [15].
September
7 Fannie Mae and Freddie Mac nationalised [16].
12 Lehman Brothers bankrupt[17] with losses of up to $160 billion to holders of its unsecured bonds.