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


Published on

A slide show to be embedded in my blog at www.investmentbankeronlife.com.

Published in: Economy & Finance, Business
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

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

  1. 2008 Wall Street Crisis: www.investmentbankeronlife.com A Timeline
  2. January 11: <ul><li>Bank of America buys mortgage lender Countrywide Financial for $4 billion in an all-stock deal. </li></ul>2008 www.investmentbankeronlife.com
  3. March 16: <ul><li>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. </li></ul>2008 www.investmentbankeronlife.com
  4. July 11: <ul><li>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 . </li></ul>2008 www.investmentbankeronlife.com
  5. July 13: <ul><li>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 . </li></ul>2008 www.investmentbankeronlife.com
  6. September 7: <ul><li>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. </li></ul>2008 www.investmentbankeronlife.com
  7. September 15: <ul><li>Investment bank Lehman Brothers files for Chapter 11 bankruptcy protection . </li></ul><ul><li>Rival Merrill Lynch agrees to be taken over by Bank of America. </li></ul><ul><li>The Dow Jones fell 504 points, the index’s worst since the 2001 terrorist attacks. </li></ul>2008 www.investmentbankeronlife.com
  8. September 16: <ul><li>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. </li></ul>2008 www.investmentbankeronlife.com
  9. September 19: <ul><li>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. </li></ul>2008 www.investmentbankeronlife.com
  10. September 20: <ul><li>Treasury Secretary Henry Paulson outlines details of a $700 billion bailout plan for firms troubled by bad mortgage debt. </li></ul><ul><li>A U.S. bankruptcy judge approves a revised version of Barclays purchase of the core U.S. business of Lehman. </li></ul>2008 www.investmentbankeronlife.com
  11. September 21: <ul><li>Goldman Sachs Group Inc. and Morgan Stanley become bank holding companies regulated by the Fed, essentially ending Wall Street's investment banking model. </li></ul>2008 www.investmentbankeronlife.com
  12. September 23: <ul><li>Warren Buffett’s Berkshire Hathaway invests $5 billion in Goldman Sachs, citing the rescue plan as a contributing factor. </li></ul>2008 www.investmentbankeronlife.com
  13. September 25: <ul><li>Washington Mutual is seized by the FDIC, making it the largest U.S. bank failure, with $307 billion in assets. </li></ul><ul><li>JPMorgan Chase buys WaMu’s banking assets for $1.9 billion. </li></ul>2008 www.investmentbankeronlife.com
  14. September 29: <ul><li>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. </li></ul><ul><li>Wachovia agrees to sell most of its assets to Citigroup in a deal brokered by regulators. </li></ul>2008 www.investmentbankeronlife.com
  15. October 1: <ul><li>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. </li></ul>2008 www.investmentbankeronlife.com
  16. October 3: <ul><li>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. </li></ul><ul><li>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. </li></ul>2008 www.investmentbankeronlife.com