Sunday, April 17, 2011

The Financial Metldown

Reference: Permanent Subcommittee for Investigations Report: “Wall Street And The Financial Crisis: Anatomy of a Financial Collapse”


The Financial Crisis Timeline:


December 2006: Ownit Mortgage Solutions bankruptcy

February 27, 2007: Freddie Mac announces it will no longer buy the most risky subprime mortgages

March 7, 2007: FDIC issues cease & desist order against Fremont for unsafe and unsound banking

April 2, 2007: New Century bankruptcy

June 17, 2007: Two Bear Stearns subprime hedge funds collapse

July 10 and 12, 2007: Credit rating agencies issue first mass downgrades of hundreds of RMBS and CDO securities

August 6, 2007: American Home Mortgage bankruptcy

August 17, 2007: Federal Reserve: “[M]arket conditions have deteriorated…. downside risks to growth have increased appreciably.”

August 31, 2007: Ameriquest Mortgage ceases operations

December 12, 2007: Federal Reserve establishes Term Auction Facility to provide bank funding secured by collateral

January 2008: ABX Index stops issuing new subprime indices

January 11, 2008: Countrywide announces sale to Bank of America

January 30, 2008: S&P downgrades or places on credit watch over 8,000 RMBS/CDO securities

March 24, 2008: Federal Reserve Bank of New York forms Maiden Lane I to help JPMorgan Chase acquire Bear Stearns

May 29, 2008: Bear Stearns shareholders approve sale

July 11, 2008: IndyMac Bank fails and is seized by FDIC

July 15, 2008: SEC restricts naked short selling of some financial stocks

September 7, 2008: U.S. takes control of Fannie Mae & Freddie Mac

September 15, 2008: Lehman Brothers bankruptcy

September 15, 2008: Merrill Lynch announces sale to Bank of America

September 16, 2008: Federal Reserve offers $85 billion credit line to AIG; Reserve Primary Money Fund NAV falls below $1

September 21, 2008: Goldman Sachs and Morgan Stanley convert to bank holding companies

September 25, 2008: WaMu fails, seized by FDIC, sold to JPMorgan Chase

October 3, 2008: Congress and President Bush establish TARP

October 12, 2008: Wachovia sold to Wells Fargo

October 28, 2008: U.S. uses TARP to buy $125 billion in preferred stock at 9 banks

November 25, 2008: Federal Reserve buys Fannie and Freddie assets


Dave


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