2008 Wall Street Crisis Timeline (as of October 3, 2008)

2008 Wall Street Crisis: www.investmentbankeronlife.com A Timeline

January 11:
Bank of America buys mortgage lender Countrywide Financial for $4 billion in an all-stock deal.
2008 www.investmentbankeronlife.com

March 16:
JP Morgan Chase buys brokerage firm Bear Stearns for $2/share in a deal backed by the Fed and Treasury Department. The price is later revised to $10/share.

July 11:
IndyMac is seized by the FDIC after depositors withdraw $1.3 billion over an 11-day period. This brought to 12 the number of banks seized by FDIC in 2008 .

July 13:
Government-sponsored mortgage finance companies Fannie Mae and Freddie Mac are nationalized by the federal government in an effort to support the U.S. housing market .

September 7:
The federal government takes control of financial giants Fannie Mae and Freddie Mac, which were nationalized in July . The two hold or guarantee about half the nation's $10 billion in mortgage loans.

September 15:
Investment bank Lehman Brothers files for Chapter 11 bankruptcy protection .
Rival Merrill Lynch agrees to be taken over by Bank of America.
The Dow Jones fell 504 points, the index’s worst since the 2001 terrorist attacks.

September 16:
Insurer American International Group (AIG) is rescued by the federal government through an $85 billion loan package in return for an 80% stake in the company . The move comes amid a cash crunch, triggered by $18 billion of losses over three quarters, a sinking stock price and debt downgrades.

September 19:
U.S. Treasury Secretary Henry Paulson calls for the government to spend hundreds of billions of dollars to take toxic mortgage assets off the books of financial companies to restore financial stability . News of the bailout plan helps world stock markets soar.

September 20:
Treasury Secretary Henry Paulson outlines details of a $700 billion bailout plan for firms troubled by bad mortgage debt.
A U.S. bankruptcy judge approves a revised version of Barclays purchase of the core U.S. business of Lehman.

September 21:
Goldman Sachs Group Inc. and Morgan Stanley become bank holding companies regulated by the Fed, essentially ending Wall Street's investment banking model.

September 23:
Warren Buffett’s Berkshire Hathaway invests $5 billion in Goldman Sachs, citing the rescue plan as a contributing factor.

September 25:
Washington Mutual is seized by the FDIC, making it the largest U.S. bank failure, with $307 billion in assets.
JPMorgan Chase buys WaMu’s banking assets for $1.9 billion.

September 29:
U.S. House of Representatives rejects the $700 billion rescue plan in a stunning 228-205 vote. The Dow Jones falls by a record 777 points.
Wachovia agrees to sell most of its assets to Citigroup in a deal brokered by regulators.

October 1:
U.S. Senate passes a modified U.S. financial rescue plan aimed at restoring global financial stability, sending the measure to the U.S. House of Representatives for a vote on Friday.

October 3:
President Bush signs the historic $700 billion rescue bill approved just hours earlier by the U.S. House of Representatives in a 263-171 vote.
Wells Fargo agrees to buy Wachovia for $15.4 billion or $7 a share, better than Citigroup’s earlier offer of about $1 a share.

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2008 Wall Street Crisis Timeline (as of October 3, 2008)

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