Through our consulting services and events, AmeriCatalyst LLC has developed a worldwide reputation as the leader in communications, trend prediction and analysis within the mortgage industry.
Globalization of markets
Mergers, acquisitions, warehouse lines, investment banks and other market activities from 1993 through 2009.
The following timeline, first compiled starting in 2005 and updated regularly through 2009, provides a glimpse into worldwide market activities that accompanied the implosion of the U.S. housing market, which had a domino effect around the world, with investment funds, investment banks, banks and governments falling into the black hole. The timeline was first presented at EuroCatalyst 2005, to warn about impending dangers the markets were facing, and then again at EuroCatalyst 2007. Please report any typos or other mistakes to Shirley Jackson (shirley.jackson at americatalyst.com).
| DATE | COUNTRY | EVENT | ACTION |
| 1-Nov-1993 | IT | Deutsche Bank acquires Banca Popolare di Lecco | acquisition |
| 1-Jan-1994 | IT | Deutsche Bank acquires Prestitempo | acquisition |
| 1-Nov-1994 | UK | Kensington Mortgages established by American expat Martin Finegold | creation |
| 1-Jan-1997 | US | Lehman Brothers purchases Aurora Loan Services | acquisition |
| 1-Jan-1997 | IT | Milano Centrale enters partnership with Morgan Stanley Real Estate Funds | jv |
| 1-Mar-1998 | UK | Mortgages PLC (set up in 1997) launches as non-conforming lender in the UK market | creation |
| 1-Jan-2000 | IT | Morgan Stanley Real Estate Funds acquires Fonspa from BCI Comit and Unicredito | acquisition |
| 24-May-2000 | US | US Representatives Committee on Banking and Financial Services holds "Preditory Lending Practices" hearing "in response to concerns that have been raised in recent months in various parts of the country about certain practices by a small number of lenders, including allegations that senior citizens and low-income persons have been targeted for fleecing or abusive tactics. We will hear from representatives of consumers, the industry, as well as State and Federal regulators."http://commdocs.house.gov/committees/bank/hba64810.000/hba64810_0.HTM | subcommittee hearing |
| 1-Aug-2000 | US | Lehman invests $6 million for 75% share in BNC Mortgage | investment |
| 3-Jan-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 6 percent | rate cut |
| 31-Jan-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 5.5 percent | rate cut |
| 20-Mar-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 5 percent | rate cut |
| 18-Apr-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 4.5 percent | rate cut |
| 7-May-2001 | NL | GMAC-RFC introduces risk-based pricing to the Dutch market with the formation of GMAC Hypotheken | creation |
| 15-May-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 4 percent | rate cut |
| 27-Jun-2001 | US | Federal Open Market Committee lowers federal funds rate by 25 basis points to 3.75 percent | rate cut |
| 21-Aug-2001 | US | Federal Open Market Committee lowers federal funds rate by 25 basis points to 3.5 percent | rate cut |
| 17-Sep-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 3 percent | rate cut |
| 2-Oct-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 2.5 percent | rate cut |
| 6-Nov-2001 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 2 percent | rate cut |
| 1-Dec-2001 | UK | Nikko Principal Investments Limited acquires majority shareholding in Mortgages plc | acquisition |
| 1-Dec-2001 | IT | SocGen purchases remaining 50% stake in Finitalia (joint consumer credit subsidiary) from Unicredito | acquisition |
| 11-Dec-2001 | US | Federal Open Market Committee lowers federal funds rate by 25 basis points to 1.75 percent | rate cut |
| 1-Jan-2002 | IT | Milano Centrale changes name to Pirelli & C | |
| 1-Jan-2002 | IT | Pirelli & C acquires Pirelli & C Credit Servicing | acquisition |
| 1-Mar-2002 | MY | HSBC acquires ABN Amro Bank Berhad's retail mortgage portfolio (book value $65.8 million) of 2,300 accounts | acquisition |
| 1-Jun-2002 | IT | Meliorbanca begins residential mortgage lending with exclusive agreement with Divisione Mutui | |
| 1-Jul-2002 | UK | Kensington Mortgages acquires The Mortgage Lender | acquisition |
| 1-Sep-2002 | UK | Lehman Brothers acquires Southern Pacific Mortgages Ltd | acquisition |
| 1-Mar-2003 | US | Lehman exercises option to buy BNC outright | acquisition |
| 1-Mar-2003 | US | HSBC buys Household International (US subprime lender and oldest consumer finance company in US) for $15.5 billion | acquisition |
| 1-Apr-2003 | NZ | HSBC acquires AMP Bank Limited's NZ retail mortgage assets and deposits for $15 million (25,000 customer accounts) | acquisition |
| 25-Jun-2003 | US | Federal Open Market Committee lowers federal funds rate by 25 basis points to 1.00 percent, its lowest level since the 1950s | rate cut |
| 1-Oct-2003 | UK | Crown Mortgage Management creates Rooftop Mortgages as specialist lender with warehouse line from Bear Stearns | creation |
| 1-Dec-2003 | UK | Lehman Brothers acquires Preferred Mortgages from Barclays Private Equity | acquisition |
| 1-Jan-2004 | UK | Infinity Mortgages is launched as a specialist nonconforming lender | launch |
| 1-Jan-2004 | IT | Divisione Mutui renamed Systema Mutui | |
| 1-Jan-2004 | NL | Lehman Brothers sets up ELQ Hypotheken, a subprime nonconforming lender, in the Dutch Market | creation |
| 15-Jan-2004 | US | JP Morgan Chase pays $58 billion for Bank One (completed 1 July 2004) | acquisition |
| 1-Apr-2004 | UK | HVB Europe sets up Redstone Mortgages Plc as a special purpose company to participate in the secondary loan sales market in the UK, purchasing pools of residential mortgage loans and funding them via securitization. | creation |
| 1-May-2004 | UK | Kensington invests £1 million to acquire a minority stake in Money Partners Limited with the option to purchase the rest of the business equity over the next four years. | investment |
| 1-May-2004 | UK | Freedom Funding is launched as UK specialist lender with backing of Freedom Finance | launch |
| 30-Jun-2004 | US | The US Federal Reserve starts a cycle of interest rate rises that will lift borrowing costs from 1 percent, to the current level of 5.25 percent. It raises its target for the federal funds rate by 25 basis points to 1.25 percent. The central bank will go on to increase interest rates 16 more times in a row as it tries to slow inflation. It pauses in June 2006, and has not lifted borrowing costs from 5.25 percent since then. | rate hike |
| 10-Aug-2004 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 1.50 percent | rate hike |
| 21-Sep-2004 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 1.75 percent | rate hike |
| 1-Nov-2004 | UK | Merrill Lynch acquires Mortgages plc (from Nikko Principal Investments Limited, majority shareholder) , Genesis Home Loans Plc (owned by Mortgages plc), and Wow! Mortgages & Loans (owned 50% by Mortgages plc in joint venture with Mortgageforce) | acquisition |
| 1-Nov-2004 | IE | Kensington takes 64% stake in Irish subprime lender Start Mortgages | investment |
| 10-Nov-2004 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 2 percent | rate hike |
| 12-Nov-2004 | Banco Santander and Abbey National reach agreement on merger (acquisition) | merger | |
| 14-Dec-2004 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 2.25 percent. | rate hike |
| 1-Jan-2005 | UK | Bear Stearns acquires Rooftop Mortgages (subprime $1.7 billion in 2006) | acquisition |
| 1-Jan-2005 | NL | Citigroup provides funding for the creation of Sparck Hypotheken in the Dutch market | funding |
| 1-Jan-2005 | IT | GE Money set up as mortgage lender in Italy | creation |
| 1-Jan-2005 | IT | Prestitempo enters mortgage space with new line of mortgage products called Mutuo Pratico for new homes, renovation, refinancing | |
| 2-Feb-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 2.50 percent | rate hike |
| 22-Mar-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 2.75 percent. | rate hike |
| 1-Apr-2005 | UK | Bear Stearns acquires ownership stake in Essex & Capital Mortgage Corp. Limited (subprime broker) | acquisition |
| 1-Apr-2005 | US | Bear Stearns starts Bear Stearns Residential Mortgage Corp. | creation |
| 1-Apr-2005 | IT | Macquarie Bank establishes mortgage business in IT | creation |
| 1-May-2005 | US | HSBC integrates Household International with North American group operations under HSBC Finance Corporation | creation |
| 3-May-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 3 percent. | rate hike |
| 12-Jun-2005 | IT | UniCredit buys HVB for €15 billion | acquisition |
| 30-Jun-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 3.25 percent. | rate hike |
| 30-Jun-2005 | GE Consumer Finance acquires 25.5 percent stake in Turkey's Garanti Bank | acquisition | |
| 12-Jul-2005 | US | Moody's revises its overcollateralization floor for subprime mortgage transactions that include a mix of asset types, such as manufactured housing loans, to increase the level of protection for investors in RMBS | criteria |
| 9-Aug-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 3.50 percent. | rate hike |
| 1-Sep-2005 | US | Wachovia buys AmNet Mortgage (nationwide resi broker in California) for $83 million. | acquisition |
| 1-Sep-2005 | US | Merrill Lynch buys 20 percent stake in Ownit Mortgage Solutions Inc for $100 million and $2.5 billion warehouse lending facility | acquisition |
| 20-Sep-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 3.75 percent. | rate hike |
| 26-Oct-2005 | UK | Professional Mortgage Packagers Alliance launches Unity Homeloans as a joint initiative with South African investment bank Investec | launch |
| 1-Nov-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 4 percent. | rate hike |
| 1-Dec-2005 | UK | Morgan Stanley acquires UK packager Advantage Homeloans | acquisition |
| 13-Dec-2005 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 4.25 percent. | rate hike |
| 1-Jan-2006 | FR | Bear Stearns acquires Bearimmo (subprime origination, monthly origination of $25 million) | acquisition |
| 31-Jan-2006 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 4.50 percent | rate hike |
| 1-Feb-2006 | IT | BNP Paribas completes €9 billion purchase of Banca Nazionale del Lavoro | acquisition |
| 21-Feb-2006 | UK | Amber Homeloans (Skipton Building Society) launches adverse mortgage range through distributor Optoma | |
| 1-Mar-2006 | US | Fortress buys Centex Home Equity (subprime) from Centex Corp. for $575 million. Sale completed in July 2006 and unit is renamed Nationstar Mortgages | acquisition |
| 1-Mar-2006 | UK | Investec purchases 100 million mortgage loan book from Amber Homeloans as part of strategy to build 1 billion portfolio of subprime mortgages | investment |
| 28-Mar-2006 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 4.75 percent | rate hike |
| 1-Apr-2006 | UK | Lehman completes acquisition of London Mortgage Company, Lehman's third UK specialist lender | acquisition |
| 1-Apr-2006 | UK | German bank West LB establishes UK-based Basinghall Finance with the acquisition of three portfolios totalling £650 million from Scarborough Building Society. | creation |
| 1-Apr-2006 | UK | Deutsche Bank launches specialist lender db mortgages | launch |
| 1-Apr-2006 | SE | Kensington Mortgages acquires minority stake in Swedish nonconforming lender Bluestep for £2.7 million. Other institutional investors include Barclays | acquisition |
| 1-Apr-2006 | IT | Oakwood acquires 80 percent of Ktesios SpA (salary-secured loans) | acquisition |
| 1-Apr-2006 | US | Wachovia acquires American Property Financing for $3 billion from Emigrant Bank (servicing portfolio of $8 billion) | acquisition |
| 10-May-2006 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 5 percent. | rate hike |
| 1-Jun-2006 | US | Barclays buys HomEq Servicing from Wachovia for $469 million | acquisition |
| 1-Jun-2006 | IT | Meliorbanca sells its equity in Systema Mutui indirectly to Lehman Brothers (through Sy SRL) for €51 million, and agrees to distribute all its mortgages through Systema Mutui for six years | acquisition |
| 1-Jun-2006 | IT | Morgan Stanley acquires Fonspa from MS REF | acquisition |
| 1-Jun-2006 | IT | Pirelli & C signs agreement with Calyon to form joint venture (Pirelli 33 percent Calyon 66 percent) to invest in European NPLs | jv |
| 1-Jun-2006 | US | BBVA purchases Texas Regional Bancshares (holding company for Texas State Bank) for $2.2 billion and State National Bank for $480 million | acquisition |
| 29-Jun-2006 | US | The Federal Open Market Committee raises its target for the federal funds rate by 25 basis points to 5.25 percent. | rate hike |
| 1-Jul-2006 | UK | Merrill Lynch acquires Freedom Funding Ltd, which becomes part of ML's Global Residential Real Estate Group | acquisition |
| 1-Jul-2006 | IT | BBVA buys100 percent of Advera (consumer finance company), now called BBVA Finanzia SpA | acquisition |
| 1-Aug-2006 | IT | BBVA buys Maggiore Fleet (auto-leasing) for €67 million | acquisition |
| 1-Aug-2006 | IT | Credit Agricole signs agreement with Fiat to set up 50-50 auto finance joint venture | jv |
| 1-Sep-2006 | US | Deutsche Bank completes acquisition of Chapel Funding, California-based mortgage originator. (Agreement reached in May 2006) Servicing and origination functions to be operated under db home lending as part of DB's Global Markets RMBS platform | acquisition |
| 1-Sep-2006 | US | Santander buys 90 percent of Drive Financial (subprime auto-financing company) for $651 million from HBOS | acquisition |
| 14-Sep-2006 | UK | edeus is launched by Oakwood Financial | launch |
| 1-Oct-2006 | US | Wachovia completes acquisition of Golden West Financial (California mortgage specialist) for $26 billion (deal in June 2006) | acquisition |
| 1-Oct-2006 | IT | Oakwood acquires all of Ktesios SpA | acquisition |
| 1-Nov-2006 | UK | Kensington increases equity stake in Money Partners from 37.5 percent to 57.5 percent. Additional equity was purchased at an initial cost of £13.1m with deferred consideration of up to a maximum of £11m due in 2009, depending on performance. | investment |
| 1-Nov-2006 | US | Deutsche Bank, in a joint venture with Hispanic National Mortgage Association, sets up HNMA Funding in San Diego to offer loan programs for Hispanic and other immigrant borrowers in the US | jv |
| 1-Dec-2006 | US | Morgan Stanley completes acquisition of Saxon Capital (servicer and originator) in US for $706 million | acquisition |
| 1-Dec-2006 | US | Merrill Lynch acquires First Franklin mortgage origination franchise and related servicing platform from National City Corp. for $1.3 billion (agreement in Sept 2006) | acquisition |
| 1-Dec-2006 | US | HSBC profits plummet on US subprime woes | |
| 1-Dec-2006 | US | Fortress buys nonprime origination platform of Champion Mortgage from KeyCorp for $200 million | acquisition |
| 1-Dec-2006 | RU | Morgan Stanley acquires CityMortgage Bank, Russian bank specialising in originating, servicing and securitising residential loans in the Russian Federation, for $300 million | acquisition |
| 1-Dec-2006 | IT | Pirelli completes acquisition of Credit Servicing from Morgan Stanley RE | acquisition |
| 28-Dec-2006 | US | Ownit Mortgage Solution files for bankruptcy | bankruptcy |
| 1-Jan-2007 | UK | Wachovia buys 70 percent of ECM for estimated €750 million) | acquisition |
| 1-Jan-2007 | US | Lehman Brothers reportedly reaches tentative agreement to assume Mortgage Lender Network's wholesale operations | acquisition |
| 1-Jan-2007 | US | Lehman Brothers completes purchase of Capital Crossing Bank for $210 million (agreement signed 20 Sept 2006) | acquisition |
| 1-Jan-2007 | US | Deutsche Bank acquires MortgageIT of New York for $430 million as a key element of Deutsche's build-out of a vertically integrated mortgage origination and securitization platform. (Agreement in July 2006) MortgageIT licensed to originate resi mortgages in all 50 states. Employs 2,100 people in 47 branches. | acquisition |
| 1-Jan-2007 | IE | Merrill Lynch forms joint venture with Irish Life & Permanent to set up mortgage originator Springboard Mortgages | jv |
| 1-Jan-2007 | IT | Intesa SanPaolo is set up | merger |
| 1-Jan-2007 | IT | Merrill Lynch and CIR (Compagnie Industriale Riunite) SpA (controlled by Compagnia Finanziaria de Benedetti) each acquire 47.4 percent of Oakwood Financial | acquisition |
| 1-Feb-2007 | US | Bear Stearns agrees to purchase of Encore Credit Corp (subprime unit of ECC Capital Corp, based in California) for $26 million (agreement in Oct 2006) | acquisition |
| 1-Feb-2007 | IT | Merrill Lynch and COFIDE conclude agreement for Merrill to take 39 percent stake in Societa Finaza Attiva, which is renamed Euvis SpA | investment |
| 1-Feb-2007 | PL | Deutsche Bank Polska enters consumer finance market by setting up db kredyt with 22 branches (expanding to 60 by end of 2nd quarter) | |
| 1-Feb-2007 | US | BBVA purchases Compass Bancshares for $9.6 billion | acquisition |
| 8-Feb-2007 | UK | HSBC issues first profit warning as bad debt provision from UK mortgage lending spirals | |
| 12-Feb-2007 | US | Credit Suisse to buy most of assets of ResMAE Financial (subprime originator and lender) for $19 million as part of ResMAE's bankruptcy reorganization | acquisition |
| 12-Feb-2007 | US | ResMAE Mortgage Corp., US subprime lender, files for bankruptcy | bankruptcy |
| 20-Feb-2007 | US | Nova Star Financial reports a surprise loss | |
| 1-Mar-2007 | IT | Intesa San Paolo hands over 29 former Banca Intesa branches to FriulAdria (part of earlier agreement) and sells FriulAdria shares to Cariparma, which controls FriulAdria, for €136 million | |
| 1-Mar-2007 | IT | Intesa San Paolo signs contract with Credit Agricole on sale of all equity in Cassa di Risparmio di Parma (Carisparma) for €3.8 billion and in Banca Popolare FiulAdria for €836.5 million, as well as sale of 202 former Banca Intesa branches for €1.3 billion | acquisition |
| 2-Mar-2007 | US | The Federal Reserve announces draft regulations to tighten lending standards. Lenders would be required to grant loans on a borrower's ability to pay the fully indexed interest rate that would apply after the low, initial fixed-rate period of two or three years. New regulations are met with scepticism in Congress. | |
| 2-Mar-2007 | US | Fremont General stops making subprime loans and puts its subprime business up for sale. | cease ops |
| 8-Mar-2007 | US | New Century Financial, the second largest subprime lender in 2006, stops making loans. | cease ops |
| 12-Mar-2007 | US | New Century Financial share trading suspended | trading halt |
| 16-Mar-2007 | US | Accredited Home Lenders Holding says it will pass on $2.7 billion of money loaned - at a heavy discount - in order to generate some cash for its business | |
| 20-Mar-2007 | US | People’s Choice files for bankruptcy. | bankruptcy |
| 27-Mar-2007 | US | At a Joint Economic Committee hearing, Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, says housing market weakness "does not appear to have spilled over to a significant extent.” And "At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.” | |
| 1-Apr-2007 | US | Barclays buys EquiFirst Corp (12th largest subprime wholesale mortgage originator in US) from Regions Financial. Initial price was $225 million (Jan 2007), but cut to $76 million | acquisition |
| 1-Apr-2007 | IT | Societe Generale reported in merger talks with UniCredit | rumours |
| 2-Apr-2007 | US | New Century Financial files for Chapter 11 bankruptcy protection after it was forced by its backers to repurchase billions of dollars worth of bad loans. The company says it will have to cut 3,200 jobs, more than half of its workforce, as a result of the move. | bankruptcy |
| 5-Apr-2007 | US | Barclays sells Monument, a subprime credit card business, at a loss to CompuCredit | |
| 6-Apr-2007 | US | American Home Mortgage writes down the value of risky mortgages rated one step above subprime. | |
| 11-Apr-2007 | US | Subprime lender NovaStar Financial says its looking for a buyer | |
| 18-Apr-2007 | US | Freddie Mac announces plans to refinance up to $20 billion of loans held by subprime borrowers who would be unable to afford their adjustable-rate mortgages at the reset rate. | |
| 24-Apr-2007 | US | The National Association of Realtors announces that sales of existing homes fell 8.4 percent in March from February, the sharpest month-to-month drop in 18 years. | |
| 3-May-2007 | CH | Hedge fund Dillon Read Capital is folded back into UBS less than 2 years after it was set up, triggered by a SFr150 million (£62 million) first-quarter loss on US subprime mortgage investments | |
| 17-May-2007 | US | At the Federal Reserve Bank of Chicago’s Forty-Third Annual Conference on Bank Structure and Competition, Chairman Bernanke reiterates his March statement by saying the Fed does not foresee a broader economic impact from the growing number of mortgage defaults. | |
| 24-May-2007 | US | Shares in Bear Stearns come under pressure as questions are raised about the investment bank's exposure to the subprime market in the US. | |
| 25-May-2007 | US | The National Association of Realtors reports that sales of existing homes fell by 2.6 percent in April to a seasonally adjusted annual rate of 5.99 million units, the slowest sales pace since June 2003. The number of unsold homes left on the market reached a record total of 4.2 million. | |
| 30-May-2007 | UK | South African investment bank Investec pays £283 million for Kensington Mortgages | acquisition |
| 2-Jun-2007 | US | Merrill Lynch seizes and sells $800 million (£400 million) of bonds that are being used as collateral for loans made to Bear Stearns' hedge funds. | |
| 4-Jun-2007 | US | Accredited Home Lenders Holding enters merger agreement with Lone Star Fund | |
| 6-Jun-2007 | US | ZipRealty Inc., a national real-estate brokerage firm, announces that the number of homes listed for sale in 18 major US metropolitan areas at the end of May was up 5.1 percent from April. This is a striking deviation from the general trend as tracked by the Credit Suisse Group, which says on a national basis, inventories of listed homes have typically been little changed in May during the past two decades. | |
| 10-Jun-2007 | UK | Barclays reportedly preparing to sell FirstPlus, a sub-prime consumer loan business | |
| 14-Jun-2007 | US | Reports emerge that Bear Stearns is liquidating its assets in a hedge fund that made large bets on the US subprime market. | |
| 14-Jun-2007 | US | Goldman Sachs reports flat profit from a year ago due to mortgage market problems. | profitless |
| 22-Jun-2007 | US | Bear Stearns says it will provide $3.2 billion in loans to bail out one of its hedge funds, the High-Grade Structured Credit Strategies Fund, due to bad bets on subprime mortgages. The bailout of the fund would be the largest by a bank in almost a decade. Analysts have also been questioning the position of another fund, the High-Grade Structured Credit Strategies Enhanced Leverage Fund. | bailout |
| 24-Jun-2007 | UK | Queen's Walk Fund, Queen's Walk Investment, a listed vehicle founded by Cheyne Capital Management, says that it lost €67.7 million in the year ending 31 March because of a sharp decline in the value of its UK and US mortgage-linked securities holdings. Queen's Walk invests solely in first-loss pieces | losses |
| 25-Jun-2007 | US | Reports emerge that Bear Stearns will have to rescue a second hedge fund as rival banks refuse to help in bailing it out. | bailout |
| 29-Jun-2007 | US | Bear Stearns hires a new head of asset management to find out what went wrong at its hedge funds. | |
| 29-Jun-2007 | UK | Caliber Global Investment, hedge fund run by Cambridge Place, sells assets after £4.4 million losses on subprime | |
| 1-Jul-2007 | US | Credit Suisse to acquire Lime Financial Services (wholesale nonprime resi lender in Oregon) | |
| 4-Jul-2007 | UK | The UK's Financial Services Authority says it will take action against five brokers that sell subprime mortgages, claiming they offer loans to people who should not be given them. | |
| 10-Jul-2007 | UK | Datamonitor says UK subprime mortgages are set to grow faster than mainstream mortgages, with the market worth some £31.5bn by 2011. | |
| 10-Jul-2007 | US | Standard and Poor’s places credit ratings on 612 classes of RMBS backed by US subprime collateral on CreditWatch Negative | ratings watch |
| 10-Jul-2007 | US | Moody's downgrades 399 subprime RMBS issued in 2006, places 32 more on downgrade review; These 2006-issued RMBS are backed primarily by first lien adjustable- and fixed-rate subprime mortgage loans. Ratings were placed under review and downgraded based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. | downgrades |
| 10-Jul-2007 | US | Moody's takes rating actions on 127 on subprime second-lien RMBS originated in 2005; 52 downgrades | downgrades |
| 13-Jul-2007 | US | US industrial firm General Electric decides to sell the WMC Mortgage subprime lending business that it bought in 2004. "The mortgage industry has greatly changed since the purchase of WMC," says its chief Laurent Bossard. | |
| 17-Jul-2007 | US | The Federal Reserve announces a pilot program to monitor brokers, joining the Board of Governors of the Federal Reserve with the Office of Thrift Supervision, the Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, to conduct targeted consumer-protection compliance reviews of underwriting standards, oversight, and risk-management practices within non-depository lenders with significant subprime mortgage operations. | |
| 18-Jul-2007 | US | Bear Stearns announces its two hedge funds that invested heavily in the subprime market are essentially worthless, having lost over 90 percent of their value, equal to over $1.4 billion. | |
| 18-Jul-2007 | US | Commerce Department announces housing starts are down 19.4 percent over the last 12 months. Also announced is a 7.5 percent plunge in permits to build new homes, the largest monthly decline since January 1995. Permits are 25.2 percent below their level a year ago, reflecting continued pessimism among builders over the near-term outlook for new homebuilding. | |
| 18-Jul-2007 | US | In two days of testimony in Congress, Bernanke said there will be “significant losses” due to subprime mortgages, but that such losses are “bumps” in “market innovations” (referring to hedge fund investments in subprime mortgages). Bernanke reiterated that problems in the subprime mortgage market have not spilled over into the greater system. Bernanke also said the problems “'likely will get worse before they get better.” He forecasts that the economy is poised for moderate growth, but continuing problems in the housing market prompt the Fed to slightly reduce its growth expectations. | |
| 19-Jul-2007 | US | Standard and Poor's downgrades 418 closed-end second-lien RMBS classes | downgrades |
| 19-Jul-2007 | US | Beverly Hills plastic surgeon files lawsuit against Moody's claiming that Moody's gave excessively high ratings to bonds backed by subprime mortgages and as a result, Moody's stock price was artificially inflated. | lawsuit |
| 20-Jul-2007 | US | Bernanke warns that the crisis in the US subprime lending market could cost up to $100bn. | |
| 23-Jul-2007 | AXA Investment Managers closes £460m subprime related fund to new investors | ||
| 23-Jul-2007 | US | Moody's downgrades 22 tranches issued by CSFB "HEAT" and place 32 on review for possible downgrade. The deals have experienced an increasing rate of severely delinquent loans with the recent pace of losses eroding overcollateralization below targeted levels. The collateral backing each deal consists primarily of first-lien, subprime fixed and adjustable rate mortgage loans. | |
| 25-Jul-2007 | US | FitchRatings predicts massive loan refinancing (more than half of $1.3 trillion leveraged loan market) | |
| 26-Jul-2007 | US | Bear Stearns seizes assets from one of its problem-hit hedge funds as it tries to stem losses. | |
| 26-Jul-2007 | Alliance Boots and Chrysler fail to find buyers for £10bn of debt to fund buyouts | ||
| 27-Jul-2007 | US | Worries about the subprime crisis hammer global stock markets and the main US Dow Jones stock index loses 4.2 percent in five sessions, its worst weekly decline in almost five years. | |
| 29-Jul-2007 | DE | FT reports that Germany puts rescue fund in place to shore up IKB Deutsche Industriebank, Europe's first big casualty of the US subprime crisis; a pledge to guarantee obligations of more than €8 billion (£5.4 billion) – more than five times IKB's stock market value | |
| 30-Jul-2007 | DE | German lender IKB issues profits warning linked to subprime lending. CEO quits | |
| 31-Jul-2007 | US | Bear Stearns stops clients from withdrawing cash from a third fund, saying it has been overwhelmed by redemption requests. The lender also files for bankruptcy protection for the two funds it had to bail out earlier. | |
| 31-Jul-2007 | US | Home prices continue to fall, marking the 18th consecutive decline, beginning in December 2005, in the growth rate of housing prices, according to the monthly S&P/Case-Shiller's Home Prices Indices, which tracks housing prices in metropolitan areas and is considered a leading measure of US single-family home prices. The 10-City Composite index showed an annual decline of 3.4 percent (its biggest since 1991) and the 20-City Composite reported an annual decline of 2.8 percent. | |
| 31-Jul-2007 | US | Moody's Investors Service announces that it is refining its methodology for rating residential mortgage securitizations backed by Alt-A mortgage loans, including Option ARM loans. | |
| 1-Aug-2007 | US | Two hedge funds managed by Bear Stearns that invested heavily in subprime mortgages declare bankruptcy. Investors in the funds file suit against Bear Stearns, alleging that the investment bank mislead them about the extent of the funds’ exposure. | |
| 1-Aug-2007 | AU | Macquarie Bank says two of its funds face losses of 25 percent | |
| 3-Aug-2007 | US | US stock markets fall heavily, with the main Dow Jones Index ending the session 2.1 percent lower, amid fears about how many financial firms are exposed to problems in the subprime market. A top Bear Stearns executive says credit markets are in the worst turmoil he has seen in 22 years. London's main FTSE 100 stock index closes down 1.2 percent at 6,224.3, with French and German markets also declining. | |
| 5-Aug-2007 | US | Bear Stearns co-president Warren Spector steps down, as the lender looks to restore investor confidence following the problems with its subprime exposure. | |
| 6-Aug-2007 | US | American Home Mortgage, one of the largest US independent home loan providers, files for bankruptcy after laying off the majority of its staff. The company says it is a victim of the slump in the US housing market that has caught out many subprime borrowers and lenders | |
| 6-Aug-2007 | DE | German Bank Sal Oppenheim temporarily freezes a € 750 million asset-backed credit fund, closing it until further notice after worried investors pull out €100 million from the fund. | |
| 6-Aug-2007 | DE | WestLB Mellon Asset Management suspends issuance and redemption of shares in WestLB Mellon Compass Fund ABS Fund, because lack of market liquidity "renders its impossible to determine a fair net asset value" | |
| 7-Aug-2007 | US | The Federal Open Market Committee leaves the overnight federal funds rate at 5.25 percent, referring to tightening in the credit markets and ongoing housing market crisis as a “correction”. Despite financial market turmoil, the FOMC forecasts that “the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in the employment and incomes and a robust global economy.” | |
| 7-Aug-2007 | US | Senator Clinton introduces a plan to address mortgage lending abuses, including new regulations on brokers, strong state licensing standards, and federal registration for brokers. The plan also proposes a $1 billion fund to assist state programs that help at-risk borrowers avoid foreclosure. | |
| 7-Aug-2007 | US | Standard and Poor's places 207 Alt-A RMBS classes on CreditWatch Negative | ratings watch |
| 8-Aug-2007 | UK | DB Mortgages withdraws the full range of loans it offers to homebuyers with poor credit records, informing mortgage brokers it wants to reconsider the interest rates it demands | |
| 9-Aug-2007 | FR | French bank BNP Paribas suspends three investment funds worth €2 billion (£1.4 billion), citing problems in the US subprime mortgage sector. BNP says that it cannot value the assets in the fund, because the market has disappeared. | |
| 9-Aug-2007 | NL | Dutch bank NIBC announces losses of €137 million from asset-backed securities in the first half of this year. | |
| 9-Aug-2007 | The European Central Bank pumps €95 billion into the eurozone banking market to allay fears about a subprime credit crunch. The US Federal Reserve and the Bank of Japan take similar steps. | ||
| 9-Aug-2007 | US | American International Group, one of the biggest US mortgage lenders, warns that mortgage defaults are spreading beyond the subprime sector. With delinquencies becoming more common among borrowers in the category just above subprime. | |
| 9-Aug-2007 | US | President Bush addressing the housing market crisis, saying, “The fundamentals of our economy are strong… I'm told there is enough liquidity in the system to enable markets to correct.” Bush also said, “The conditions for the marketplace working through these issues are good. My hope is that the market, if it functions normally, will be able to yield a soft landing.” | |
| 10-Aug-2007 | London's FTSE 100 index has its worst day in more than four years, closing 3.7 percent lower. | ||
| 10-Aug-2007 | The European Central Bank provides an extra €61 billion of funds for banks. | ||
| 10-Aug-2007 | US | The Federal Reserve Board says it will provide as much money as is needed to combat the credit crunch. | |
| 10-Aug-2007 | DE | WestLB admits to credit exposure. The publicly-owned Landesbank became the latest German bank to admit exposure to the US subprime mortgage market (amid) speculation that its US asset management arm Brightwater Capital Management was facing liquidity problems. | |
| 12-Aug-2007 | DE | DWS, Deutsche Bank's asset management arm, says its ABS Fund had lost 30 percent of its value, mainly because of customer withdrawals, as it fell from €3 billion to €2.1 billion. But unlike many other European banks, it said it would keep it open. | |
| 13-Aug-2007 | Goldman Sachs says it will pump $2 billion into one of its funds (Global Equity Opportunities) after it loses $1.8 billion | ||
| 13-Aug-2007 | The European Central Bank pumps €47.7 billion into the money markets, its third cash injection in as many working days. Central banks in the US and Japan also top up earlier injections. | ||
| 13-Aug-2007 | CH | Swiss bank UBS warns that the market turmoil is likely to hit its earnings in the July to September period. | |
| 13-Aug-2007 | US | Aegis Mortgage files for bankruptcy. | |
| 13-Aug-2007 | CA | Canada's fifth largest bank, CIBC, writes off C$290 million (£137 million) in mortgage-backed securities hit by slide in US property. | |
| 13-Aug-2007 | Commerzbank says its exposure as a creditor of US mortgage lender Homebanc, which applied for Chapter 11 bankruptcy protection on 9 August, amounts to a double-digit million euro sum | ||
| 13-Aug-2007 | BNP Paribas says its exposure to Homebanc amounts to about €30 million | ||
| 14-Aug-2007 | US | Accredited Home Lenders Holding to pursue lawsuit against Lone Star Funding for failing to complete merger | |
| 14-Aug-2007 | AU | Mortgage lender Rams Home Loans Group says the "unprecedented disruptions" in credit markets may reduce its profit. | |
| 14-Aug-2007 | US | Sentinel, US money manager fund, says it will halt redemptions | |
| 15-Aug-2007 | Sal Oppenheim strengthens ties with IKB after increasing stake to 5 percent (from 3 percent) | ||
| 15-Aug-2007 | US | Rep Barney Frank announces plans to hold hearings in the House Financial Services Committee investigating credit rating agencies role in the subprime mortgage crisis. | |
| 15-Aug-2007 | AU | Hedge fund manager Basis Capital warns losses at one of its funds may top 80 percent. | |
| 15-Aug-2007 | European Commission is to investigate credit ratings agencies amid growing dismay over their slow response to the subprime mortgage crisis. Officials in Brussels, and many other critics, believe the ratings agencies failed to act quickly enough to warn investors about the risks of investing in securities backed by US subprime mortgages – the sector whose troubles triggered the recent global market volatility. | ||
| 15-Aug-2007 | NL | Kaupthing, the Nordic bank, pays almost $3bn for NIBC, the unlisted Dutch merchant bank owned by a consortium led by Chris Flowers, the former Goldman Sachs banker, a week after NIBC disclosed substantial losses on investments in US asset-backed securities. | |
| 16-Aug-2007 | US | Countrywide Financial, the nation’s largest mortgage lender, draws down $11.5 billion from its credit lines. | |
| 16-Aug-2007 | AU | Shares in the Australian mortgage lender RAMS Home Loans Group crash 60 percent as the US credit squeeze leaves it unable to refinance $5 billion in debt | |
| 17-Aug-2007 | US | The US Federal Reserve cuts the interest rate at which it lends to banks by a quarter of a percentage point to help banks deal with credit problems. | rate cut |
| 17-Aug-2007 | UK | Unity Homeloans (Investec) withdraws its subprime range of products | |
| 17-Aug-2007 | UK | Infinity Mortgages (financed by South African investment bank Investec) withdraws its subprime range, effectively shutting down | |
| 17-Aug-2007 | UK | Preferred Mortgages tightens its lending criteria, including reducing its DTI ratio to 50 percent | |
| 20-Aug-2007 | UK | Bank of England makes emergency £314 million loan to an unidentified bank through its standing facility. The standing facility allows banks to borrow unlimited amounts at a penalty rate of 6.75 percent. This is not the first time the credit facility has been tapped; it was last used on 17 July. The loan is not itself unusual as there are occasions when similar amounts have been tapped, even before the current financial market crisis. Hence, the drawdown does not necessarily represent a bailout by the BoE of a financial institution. | |
| 20-Aug-2007 | UK | Amber Homeloans announces continued commitment to nonconforming market despite market volatility: Gordon Jolly: “Many subprime lenders have taken the decision to protect their own interests, rather than maintain their commitment to intermediary business partners in the face of the threat that the US subprime crash has brought. Amber is sticking with our current fixed rates across our subprime ranges, including our unlimited adverse products.” | |
| 21-Aug-2007 | US | Credit card specialist Capital One Financial announces it was scaling back its involvement in home loans by shutting its Virginia-based Greenpoint Mortgage operation at a cost of $860 million (£432 million) with the loss of 1,900 jobs. | |
| 21-Aug-2007 | US | US SEC files fraud charges over the demise of Chicago-based Sentinel Management - which was initially thought to be another victim of subprime mortgages when it went bankrupt on Friday. According to the SEC's complaint, Sentinel improperly used $460 million of its clients' securities as collateral to borrow $321 million | |
| 22-Aug-2007 | US | RealtyTrac Inc announces foreclosures were up 93 percent in July 2007 from July 2006. The national foreclosure rate in July was one filing for every 693 households. There were 179,599 filings reported last month, up from 92,845 a year ago. | |
| 22-Aug-2007 | US | Arizona-based lender First Magnus files for bankruptcy, leaving almost 6,000 staff out of pocket and jobless. | |
| 22-Aug-2007 | US | Countrywide Financial, is cutting 500 jobs largely at Full Spectrum, its subprime arm. | |
| 22-Aug-2007 | UK | DB Mortgages raises interest rate | |
| 23-Aug-2007 | US | Lehman Brothers announces plan to shut down BNC Mortgage, its subprime unit, shedding 1,200 jobs | |
| 23-Aug-2007 | UK | Specialist home financing company BuildLoan increases the self-cert limit on two of its intermediary offers to £400,000 for Amber Home Loans and £500,000 for Accord. | |
| 24-Aug-2007 | Bill Gross - manager of the world's largest bond fund, Pacific Investment Management (PIMCO) - calls on George Bush to intervene. | ||
| 24-Aug-2007 | UK | Northern Rock says it will raise its rates for subprime loans by up to 1.25 percentage points | |
| 24-Aug-2007 | US | Countrywide CEO says the US economy is on the verge of recession. | |
| 26-Aug-2007 | DE | The German regional bank SachsenLB is rapidly sold to Germany's biggest regional bank, Landesbank Baden-Württemberg. | |
| 28-Aug-2007 | UK | Shares in Barclays drop sharply after a report that it had been left with hundreds of millions of dollars worth of exposure to the crisis-hit US mortgage market. | |
| 28-Aug-2007 | AU | Basis Capital Fund Management of Australia files for bankruptcy protection for its hedge fund, citing defaults in US subprime mortgages | |
| 28-Aug-2007 | UK | Preferred Mortgages increases the rates on its subprime range of mortgages by an average of .65 percent | |
| 29-Aug-2007 | UK | Mortgages PLC raises interest rate | |
| 30-Aug-2007 | German Chancellor Angela Merkel criticises credit ratings agencies for not spotting companies with credit problems. There has been criticism of the high ratings given to bundles of debt that included subprime mortgages. | ||
| 31-Aug-2007 | US | Accounting firm H&R Block reveals huge losses at its mortgage arm Option One. Its chief exec likened the current crisis to the Great Depression. | |
| 31-Aug-2007 | US | Kathleen Corbet, the president of Standard & Poor's, which has faced strong criticism for its role in the US subprime crisis, resigns | |
| 3-Sep-2007 | Barclays Capital bails out a $1.6 billion (£800 million) Cairn Capital hedge fund | ||
| 3-Sep-2007 | Synapse Investment Management becomes the latest market casualty, shutting a €200 million (£135 million) fixed-income fund due to "severe illiquidity", as the gap between the Bank's base rate, 5.75 percent, and the three-month inter-bank lending rate (Libor) reached 1.05 percentage points - its widest since the mid-1980s and a clear sign of the ongoing credit crunch. Synapse reportedly was forced to shut the fund after Sachsen asked for its money back. | ||
| 4-Sep-2007 | US | The FED and other US agencies issue "Statement of Loss Mitigation Strategies for Servicers of Residential Mortgages" | |
| 5-Sep-2007 | OECD calls on Federal Reserve to cut rates and warns that the US could be heading for recession | ||
| 5-Sep-2007 | Bank of England breaks its silence on the markets crisis began, raising its reserves target by 6 percent and saying it could add another 25 percent if overnight interest rates remained high | ||
| 5-Sep-2007 | UK | edeus reprices its adverse range with an average rate increase of .65 percent | repricing |
| 5-Sep-2007 | UK | Cheyne Finance, an $8.8 billion (£4.35 billion) investment fund managed by the London-based Cheyne Capital Management, is put into receivership as the short-term credit famine looked set to intensify. Cheyne Finance is a special investment vehicle (SIV) financed by short-term borrowings and invested in subprime mortgages and other assets | |
| 5-Sep-2007 | Barclays Capital report states that since the Federal Reserve and European Central Bank had injected funds into their respective financial systems, conditions in the credit market have gotten even worse, not better. The LIBOR rate, the interest rate that banks charge each other rose to 5.72%, the highest it had been in seven years | ||
| 6-Sep-2007 | Lehman announces complete restructuring plan for residential mortgage origination business, including a cut of 850 jobs globally | restructure | |
| 6-Sep-2007 | UK | Lehman announces closure of Southern Pacific Personal Loans and London Mortgage Company | closure |
| 6-Sep-2007 | Lehman announces name change of Aurora Loan Services to Lehman Mortgage Capital | rename | |
| 6-Sep-2007 | Lehman announces Libertus (Japanese origination) and ELQ Hypotheken will also operate under Lehman Mortgage Capital name | rename | |
| 6-Sep-2007 | After having already injected billions of dollars over the past weeks, the Federal Reserve adds $31.25 billion in temporary reserves to the US money markets..the latest move to keep credit markets from drying up." These reserves are temporary loans to banks, using securities as collateral. The loans must be repaid within two weeks. | ||
| 7-Sep-2007 | US | Countrywide announces plans to lay off up to 12,000 people (20 percent of its workforce) by December | layoffs |
| 9-Sep-2007 | UK | Amber Homeloans (Skipton Building Society) removes higher-risk product from market | |
| 10-Sep-2007 | UK | Subprime lender Victoria Mortgages, backed by US venture capital group Venturion Capital, becomes the first British firm to fall victim to the credit crisis as it goes into administration after UBS and Barclays pull their warehouse lines | |
| 11-Sep-2007 | UK | Speculation grows Northern Rock could be the subject of an opportunistic bid from Lloyd's TSB looking to take advantage of its weakened position. | |
| 12-Sep-2007 | ECB loans a further €75 billion ($104 billion) for three months, a sign that institutions in the money market remain wary of lending to each other for periods of more than a week. | ||
| 12-Sep-2007 | UK | Fitch Ratings places Vertex Mortgage Services Limited's (Vertex) UK residential mortgage primary servicer ratings of 'RPS3+UK(subprime)' and 'RPS3+UK(prime)' on Rating Watch Negative (RWN). The rating watch action follows the recent announcements regarding the closure of London Mortgage Company (LMC) by Lehman Brothers (rated 'AA-' (AA minus)/'F1+'/Outlook Stable) and Victoria Mortgage Funding Limited's (Victoria) entry into administration and the uncertainty these events bring for Vertex at a time of market disruption. | |
| 13-Sep-2007 | UK | Northern Rock applies to Bank of England for emergency finances. | |
| 13-Sep-2007 | US | Countrywide lines up $12 billion of financing to help it weather a housing slowdown it expects to lead to widespread layoffs | |
| 13-Sep-2007 | US | First Horizon National, the largest bank in Tennessee, says it plans to slash its mortgage sales force by 50 percent (1,500 jobs) | |
| 14-Sep-2007 | UK | Following the BoE bailout of Northern Rock, the Council of Mortgage Lenders emphasises that the issue facing lenders at the moment is one of liquidity and funding, not lending quality. | |
| 14-Sep-2007 | Reuters reports that Lehman Brothers is looking to buy European mortgage lenders, according to its CFO | ||
| 14-Sep-2007 | US | Merrill Lynch & Co., the biggest underwriter of collateralized debt obligations, signals that the subprime mortgage crisis may hurt third-quarter earnings. The New York-based firm reports that it made ``fair value adjustments'' for potential losses to date on unspecified holdings and financing commitments. | |
| 15-Sep-2007 | UK | DB Mortgage changes subprime lending criteria | |
| 15-Sep-2007 | UK | Banks break pledge to maintain a liquid market for UK covered bonds and suspend market-marking in the securities | |
| 17-Sep-2007 | UK | HSBC rumoured to be interested in buying parts of Northern Rock's business | |
| 17-Sep-2007 | Goldman Sachs Group Inc.'s Global Equity Opportunities hedge fund reportedly lost 1.8 percent in the first week of September, extending the slide that led to last month's $3 billion cash injection after a 23 percent fall in August. | ||
| 17-Sep-2007 | UK | Merrill Lynch announces plans for job cuts at First Franklin Financial, its subprime lender. Recently filed reports with U.S. banking regulators show that Merrill Lynch Bank & Trust Co., where a lot of the First Franklin franchise is housed, lost $111 million through the first half of 2007. | job cuts |
| 17-Sep-2007 | UK | Shares in Alliance & Leicester (UK's eighth largest bank) and Bradford & Bingley fall sharply as Northern Rock continues to plunge | |
| 17-Sep-2007 | ES | Spanish Finance Minister and Bank of Spain are forced to deny British press reports that quoted Northern Rock chief executive Adam Applegarth as saying that three Spanish banks had sought ECB help the previous week. | denial |
| 18-Sep-2007 | AU | The Reserve Bank of Australia moves quickly to quash market speculation that regional lender Adelaide Bank had sought emergency cash reserves from the country’s central bank. | |
| 18-Sep-2007 | US | The Federal Open Market Committee reduce its rate for the first time since 2003, by 50 basis points, to 4.75 percent | rate cut |
| 18-Sep-2007 | UK | The Bank of England says it would inject £4.4 billion into the system at its benchmark rate of 5.75 per cent in a two-day “exceptional” tender. That brought overnight lending rates, which on Monday had surged to their highest levels in nearly six years, back down to 6.14 per cent. | |
| 18-Sep-2007 | DE | Commerzbank announces plan to acquire 60 percent share in Bank Forum in the Ukraine for $600 million, with the option to buy an additional 25 percent stake within 36 months | acquisition |
| 18-Sep-2007 | DE | KfW is reported to be considering selling its 38 percent stake in IKB, with several German banks said to be in the running, including Commerzbank | |
| 18-Sep-2007 | US | The mortgage lending crisis intensifies as Impac Mortgage Holdings Inc. says it will quit most lending activities, while Accredited Home Lenders Holding Co. posts a major quarterly loss and says its survival remains in doubt. | |
| 19-Sep-2007 | US | GE books $950 million loss on WMC shutdown | |
| 21-Sep-2007 | US | HSBC to close Decision One, a subprime mortgage unit, cutting 750 jobs, at a $880 million writeoff | |
| 21-Sep-2007 | US | Fortress Investment Group cuts off its sub-prime pipeline just over a year after buying sub-prime lender Nationstar Mortgage. | cut off |
| 23-Sep-2007 | UK | Barclays reportedly preparing to sell FirstPlus, a sub-prime consumer loan business with a £4.5 billion loan portfolio, at a loss, to escape exposure to credit risk | rumours |
| 24-Sep-2007 | IMF Global Financial Stability Report singles out UK subprime market as a key area of risk and warns that the credit crunch will last longer and be more painful than many expect. | ||
| 25-Sep-2007 | DE | Media report cites Deutsche Bank sources as saying DB faces losses up to €1.7 billion euros linked to the subprime crisis. | rumours |
| 25-Sep-2007 | US | According to the S&P/Case-Shiller’s Home Prices Indices, which track housing prices in metropolitan areas, home prices continue to fall at an increasing rate. The 10-City Composite index shows an annual decline of 4.5 percent – the largest in 16 years. | |
| 26-Sep-2007 | Credit Suisse cuts 150 jobs in its MBS business due to US subprime crisis | job cuts | |
| 26-Sep-2007 | US | SEC begins probe of whether credit-rating agencies faced Wall Street pressure to give top rankings to subprime mortgage bonds | |
| 27-Sep-2007 | US | Freddie Mac chief warns 40-45 percent change of recession caused by housing market downturn | warning |
| 27-Sep-2007 | US | NYT reports that Bear Stearns is close to selling a stake to either Warren Buffett or a financial institution (report lists Bank of America Corp, Wachovia, and two Chinese companies, Citic Group and China Construction Bank Corp | rumours |
| 28-Sep-2007 | US | US Office of Thrift Supervision shuts down NetBank, the online bank that has suffered $2.5 billion in mortgage defaults since 2006. The FDIC, which is named receiver, announces that ING Direct, part of ING Groep, will assume $1.5 billion of NetBank's insured deposits and that its customers would automatically be transferred to ING. ING will also acquire $724 million in assets. | |
| 28-Sep-2007 | EverBank of Florida announces it has acquired $700 million of NetBank mortgage assets | ||
| 28-Sep-2007 | DE | IKB says it expects to post loss of up to €700 million for 2006-7 fiscal year | |
| 28-Sep-2007 | US | Fitch Ratings places 128 subprime transactions "Under Analysis" as part of its monthly surveillance process. The transactions represent $41.7 billion of debt outstanding. Fitch to issue a rating action within 30 days. | |
| 28-Sep-2007 | Dollar hits new lows, gold reaches new highs | ||
| 1-Oct-2007 | US | Former Federal Reserve Chairman Alan Greenspan says the housing crisis is far from over. “As in similar situations of inventory excess, I would expect home prices declines to continue until the rate of inventory liquidation reaches its peak.” Greenspan adds that the consumer and broader economy will suffer as a result. | |
| 3-Oct-2007 | US | Congressional Democratic leaders, House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid, and Vice Chairman of the Democratic Caucus Senator Charles E. Schumer hold a press conference to urge the Bush administration to step up its efforts to stem the tide of foreclosures. The Democratic leaders call for the appointment of a “Mortgage Czar” to coordinate federal efforts to stop foreclosures and for Fannie Mae and Freddie Mac to expand their loan portfolios with more than $100 billion in troubled, high-cost loans to help struggling borrowers hold onto their homes. The Democrats also call on the White House to supplement Senator Schumer’s $100 million in aid to non-profits specializing in housing counseling. | |
| 3-Oct-2007 | US | Residential foreclosures in New York City hit 698 during the third quarter. It represents a 64% increase from the same period last year. Yet the spike in New York pales in comparison to the third quarter increases in Los Angeles (247%) and Miami (168%). Miami’s foreclosure rate per household is 116% higher than Los Angeles and 852% higher than New York City. | |
| 4-Oct-2007 | US | The credit ratings agency, Moody’s Investors Service, reports that subprime mortgage bonds originated in the first half of 2007 include loans that are going delinquent at the fastest recorded rate. The Moody’s report predicts that accelerating delinquencies from 2007 bonds are likely to surpass the number of delinquencies in 2006, which hit a peal not seen since 2000. | |
| 5-Oct-2007 | US | Merrill Lynch announced US$5.5 billion loss due to the subprime crisis | |
| 5-Oct-2007 | US | Washington Mutual reports US$820 million writedown in its loans and securities | |
| 10-Oct-2007 | US | The National Association for Realtors revises down its outlook for home sales. It lowers its prediction for existing home sales for the year from 5.92 million to 5.78 million. Although demand for applications to purchase homes and refinance existing mortgages rose during the preceding week, consumers continue to have trouble getting loans approved. New home sales are projected to fall to 805,000 this year and to 752,000 next year. | |
| 10-Oct-2007 | US | The Bush administration announces a new mortgage industry coalition to help homeowners stay in their homes. Treasury Secretary Henry M. Paulson Jr. estimates that the new initiative, dubbed Hope Now, will assist 2 million homeowners whose initial mortgage rates are resetting to higher and often unaffordable rates. The coalition includes 11 of the largest mortgage service companies, which represent 60 percent of all mortgages in the nation. They will be joined by mortgage counseling agencies, investors, and large trade organizations. | |
| 11-Oct-2007 | US | Senator Charles E. Schumer, Chairman of the Joint Economic Committee, announces that Representative Barney Frank, chairman of the House Financial Services Committee, supports his plan to allow Fannie Mae and Freddie Mac to raise their portfolio caps by 10 percent in a six-month window. Of the total $147 billion increase, 85 percent ($125 billion) is designated to aid subprime borrowers. Senator Schumer says: “This bill provides a lifeboat for the millions of homeowners left stranded by the Bush administration amid a sea of subprime turmoil.” | |
| 11-Oct-2007 | US | Countrywide Financial Corp reports that September mortgage lending was down 44.3 percent from a year ago. Funding for adjustable-rate mortgages fell 76 percent, which was still lower than the 92 percent decline in nonprime loan funding. Delinquencies as a percentage of unpaid principal balances rose 1.81 percent to 5.85 percent from a year earlier. | |
| 12-Oct-2007 | US | Paulson & Co., which has made money by betting on increasing foreclosures this year, announces its intention to donate $15 million to the Center for Responsible Lending and the National Association of Consumer Advocates. The two groups plan to use to the funding to establish an institute that offers legal aid to homeowners fighting foreclosure. | |
| 15-Oct-2007 | US | Consortium of U.S. banks backed by the U.S. government announces a "super fund" of $100 billion to buy MBS whose mark-to-market value plummeted in the collapse. Strongly urged to act by the Treasury Department, Citigroup, JPMorgan Chase, and Bank of America announce the creation of a new entity, called a Master Liquidity Enhancement Conduit, to raise $200 billion in order to purchase securities that are otherwise likely to be dumped on the market and further depress the housing debt crisis. | |
| 15-Oct-2007 | US | Representative Barney Frank, Chairman of the House Committee on Financial Services, holds a committee field hearing entitled “Mortgage Lending Disparities.” The hearing focuses on mortgage lending disparities in the Boston area, especially the subprime targeting of Black and Latino borrowers who were much more likely than whites or Asians living the same area to receive higher-priced loans. | |
| 15-Oct-2007 | US | Citigroup acknowledges that its risk management models failed its customers and shareholders during this summer’s credit crisis, leading to the company’s 57 percent drop in third-quarter profit. Citigroup was forced to write off $3.55 billion and set aside $2.24 billion to cover anticipated losses stemming from failing mortgages and consumer loans. | |
| 15-Oct-2007 | US | Federal Reserve Chairman Ben Bernanke says that the housing crisis is far from over and will create a “significant drag” on domestic economic growth into next year | |
| 16-Oct-2007 | US | The National Association of Home Builders reports that its housing market index, which tracks builders’ perceptions of conditions and expectations for home sales over the next six months, dropped to 18, its lowest level since the inception of the index in 1985. The housing market index has declined for eight straight months. Builder confidence increased in the Midwest by two points, but the region still has the lowest overall rate in the nation. | |
| 17-Oct-2007 | US | The Commerce Department reports that U.S. home construction starts fell 10.2 percent last month to their lowest level in more than 14 years. Building permit activity, an indicator of future construction plans, declined 7.3 percent, the largest drop since January 1995. | |
| 17-Oct-2007 | US | The Federal Reserve’s “Beige Book,” a survey of businesses, indicates that the housing crisis is intensifying and that businesses are concerned that other areas of the economy are likely to suffer as a result. | |
| 18-Oct-2007 | US | Standard & Poor’s cuts the credit ratings on $23.35 billion of securities backed by pools of home loans that were offered to borrowers during the first half of the year. The downgrades even hit securities rated AAA, which is the highest of the 10 investment-grade ratings and the rating of government debt. | |
| 18-Oct-2007 | US | Senator Charles E. Schumer calls upon the Securities and Exchange Commission (SEC) to investigate Countrywide Financial Corporation along with its chief executive Angelo Mozilo. The SEC should “expand its informal probe of suspicious stock sales by Countrywide CEO Angelo Mozilo to include the company itself, which may have taken steps to enable Mozilo’s stock dumping as the subprime crisis heated up and Countrywide’s stock prices plunged.” | |
| 24-Oct-2007 | US | Merrill Lynch revises 5 October loss to $8.4 billion | |
| 31-Oct-2007 | US | Fed lowers federal funds rate by 25 basis bpoints to 4.5% | |
| 1-Nov-2007 | US | Fed injects $41 billion into money supply for banks to borrow at a low rate, the single largest expansion by the Fed since 19 September 2001 when it injected $50.35 billion | |
| 1-Nov-2007 | Suisse | Credit Suisse revealed a $1bn write-down on bad debts. | |
| 5-Nov-2007 | US | Banking giant Citigroup announces fresh losses of between $8bn and $11bn because of exposure to the US sub-prime market. Chief executive and chairman Charles Prince resigns. | |
| 6-Nov-2007 | US | Federal Open Market Committee lowers federal funds rate by 50 basis points to 1.25 percent | rate cut |
| 8-Nov-2007 | France | BNP Paribas (after temporarily freezing hedge funds with $2.1bn in assets under management in August) revealed it had written down 301m euro ($439m, £214m) because of credit problems, including $197m related to US sub-prime and home builder lending. | |
| 8-Nov-2007 | AIG report losses in AIG's investment portfolio, credit-swap portfolio and mortgage-insurance business added up to about $1.4 billion, and caused net income to fall by 27 percent compared with last year's third quarter | ||
| 8-Nov-2007 | Morgan Stanley quantifies its losses from the sub-prime mortgage crisis, forecasting a write-off of $3.7 billion (£1.8 billion) against 4Q revenues | ||
| 9-Nov-2007 | JP | Mizuho Financial denies report in Nikkei that Mizuho Securities could be exposed to as much as 100 billion yen (860 mllion dollars) in subprime losses | |
| 9-Nov-2007 | US | US's fourth largest lender Wachovia revealed a $1.1bn loss due to decline in value of its mortgage debt plus $600m to cover loan losses (total $1.7bn, £829m). | |
| 9-Nov-2007 | EU | The European Commission warns that an unexpectedly sharp correction in house prices resulting from the global credit squeeze poses a significant risk to growth in Europe, cut growth to 2.4% in both 2008 and 2009, from 2.9% in 2007. | |
| 12-Nov-2007 | US | Bank of America, Citigroup, and JP Morgan sign super SIV of 75 billion USD and take action to allow other banks to sign up | |
| 12-Nov-2007 | EU | HSBC has closed a novel property securitization in Thailand that uses future lease payments to finance the construction of a government office tower in Bangkok. | |
| 13-Nov-2007 | US | Bank of America writes off $3bn in sub-prime losses. | |
| 14-Nov-2007 | Japan | Mizuho, Japan's second largest banking group, saw a 17% drop in first-half net profits and cut its full-year operating profit forecast by 13%, largely as a result of sub-prime-related losses at its securities arm. | |
| 14-Nov-2007 | UK | Bank of England says that credit crunch caused by sub-prime lending will lead to a sharp slowdown in UK growth | |
| 14-Nov-2007 | UK | HSBC raised its sub-prime bad debt provision by $1.4bn (£670m) to $3.4bn. | |
| 15-Nov-2007 | UK | Barclays Bank has suffered a £1.3 billion ($2.7 billion) subprime-related hit, with charges and writedowns for the third quarter amounting to £500 million (£1.02 billion) added to a further £800 million ($1.6 billion) write-down for the month of October. | |
| 15-Nov-2007 | US | US House of Representatives passes Predatory Lending and Mortgage Protection Act by lopsided majority. | |
| 16-Nov-2007 | World | Goldman Sachs forecasts sub-prime losses for entire financial sector at $400bn (£200bn). | |
| 16-Nov-2007 | UK | Adam Applegarth resigns from Northern Rock | |
| 16-Nov-2007 | UK | Nationwide warns of no UK house price growth in 2008 | |
| 19-Nov-2007 | UK | Northern Rock says bids to buy bank are "below current market value." | |
| 19-Nov-2007 | Suisse | Swiss Re expects to lose $1bn on insurance a client took out against any fall in the value of its mortgage debt. | |
| 20-Nov-2007 | US | US mortgage guarantor Freddie Mac sets aside $1.2bn to cover bad loans and reports a $2bn loss. | |
| 20-Nov-2007 | US | The US Federal Reserve cuts its 2008 growth forecast citing credit and housing market woes. | |
| 20-Nov-2007 | UK | UK buy-to-let mortgage lender Paragon sees its shares fall nearly 40% after revealing funding difficulties. | |
| 20-Nov-2007 | US | Construction of new US homes in October remains sharply lower than a year earlier, figures show. | |
| 22-Nov-2007 | UK | UK lender Kensington Mortgages withdraws its entire range of sub-prime mortgages because of market conditions. | |
| 22-Nov-2007 | UK | The Nationwide, the UK's largest building society, benefits from being seen as a haven from troubled banks. | |
| 27-Nov-2007 | US | Citigroup agrees to sell shares worth $7.5bn to an investment fund owned by Abu Dhabi. | |
| 27-Nov-2007 | US | US house prices dropped sharply in the third quarter, falling at their biggest rate in 21 years, a survey shows. | |
| 27-Nov-2007 | US | US mortgage guarantor Freddie Mac is selling $6bn of shares to cover further bad debt losses. | |
| 30-Nov-2007 | US | Morgan Stanley co-president Zoe Cruz is to retire, seen as the latest casualty of the US sub-prime crisis. | |
| 30-Nov-2007 | US | US construction spending falls sharply, led by a large fall in the building of private homes. | |
| 3-Dec-2007 | Credit agency Moody's widens its debt review, having already earmarked $116bn of debt for downgrading. | ||
| 4-Dec-2007 | UK | UK mortgage lenders should prepare for the global credit crunch to get much worse, the City watchdog says. | |
| 4-Dec-2007 | Canada | Canada cuts interest rates for the first time since April 2004 amid credit fears. | |
| 4-Dec-2007 | US | US mortgage giant Fannie Mae is to issue $7bn of shares to cover losses linked to the housing market. | |
| 6-Dec-2007 | EU | The European Central Bank keeps interest rates in the eurozone at their current level of 4%. | |
| 6-Dec-2007 | UK | The Bank of England cuts UK interest rates for the first time since 2005, amid signs that the economy is slowing. | |
| 6-Dec-2007 | UK | Royal Bank of Scotland warns it will write off about £1.25bn because of exposure to the US sub-prime market. | |
| 6-Dec-2007 | US | President George W Bush outlines plans to protect more than a million homeowners hit by the US housing slump. | |
| 10-Dec-2007 | UK | Lloyds TSB reveals that bad debt linked to the US sub-prime mortgage crisis will cost it £200m. | |
| 10-Dec-2007 | Suisse | Swiss bank UBS reports a further $10bn write-down caused by bad debts in the US housing market. | |
| 11-Dec-2007 | US | US central bank, the Federal Reserve, cuts interest rates for a third time to 4.25% to ease the credit crunch. | |
| 13-Dec-2007 | World | World central banks agree coordinated action to inject at least $100bn into short-term inter-bank credit markets to restore confidence. | |
| 14-Dec-2007 | US | Citigroup takes $49bn worth of sub-prime debts back on its balance sheets, effectively closing seven structured investment vehicles (SIVs) which had relied on money market funding. | |
| 17-Dec-2007 | US | US central bank, the Federal Reserve, makes $20bn available to commercial banks at auction to help ease the credit crunch. | |
| 18-Dec-2007 | UK | Bank of England makes £10bn available to UK banks to ease credit crunch. | |
| 18-Dec-2007 | EU | ECB lends European commercial banks $500bn over the Christmas period to help ease the credit crisis. | |
| 18-Dec-2007 | US | The US Federal Reserve Bank tightens rules on sub-prime lending, requiring mortgage companies to check more carefully on customers' income and give full disclosure of the cost of the loan. | |
| 19-Dec-2007 | US | Morgan Stanley writes off $9.4bn in sub-prime losses and sells a 9.9% stake in the company to the Chinese state investment company CIC for $5bn to rebuild its capital. | |
| 4-Jan-2008 | US | US unemployment rises sharply as job report sparks fall in stock market | |
| 7-Jan-2008 | US | President George W Bush admits that the credit crunch could slow the US economy in 2008, but says it is still fundamentally strong. | |
| 9-Jan-2008 | World | World Bank says that world economic growth will slow in 2008 due to credit crunch, but strong performance in China and India will cushion impact. | |
| 9-Jan-2008 | US | Bear Stearns boss James Cayne steps down after the firm reveals $1.9bn in sub-prime losses, the largest in its history. | |
| 11-Jan-2008 | US | The largest mortgage lender in the US, Countrywide, which pioneered sub-prime mortgages, is bought by Bank of America for $4bn after its shares plunge 48%. | |
| 11-Jan-2008 | US | Federal Reserve boss Ben Bernanke says that the outlook for the US economy is deteriorating among continuing worries about the sub-prime crisis. | |
| 11-Jan-2008 | Suisse | Swiss investment bank UBS warns that is still does not know the scale of its total losses from the sub-prime crisis and says it might make a loss in 2007 when it reports its full results. | |
| 15-Jan-2008 | US | Citigroup, the largest bank in the US, reports a $9.8bn loss for the fourth quarter and writes down $18bn in sub-prime losses. It also announces further investments in the group by Kuwait and Saudi Arabia. | |
| 18-Jan-2008 | US | Lehman Brothers Holdings Inc. announced it will "substantially" reduce its U.S. residential-mortgage lending, suspending its warehousing operations, cutting 1300 jobs from Aurora Loan Services. | |
| 21-Jan-2008 | Germany | German state bank, WestLB, said it would report a loss of $1.4 billion in 2007 because of its exposure to deteriorating mortgage assets. | |
| 21-Jan-2008 | Germany | Commerzbank warned it would make additional write-downs in the fourth quarter of 2007. | |
| 25-Jun-2008 | US | The State of Illinois is suing mortgage giant Countrywide. The lawsuit charges that Countrywide sold misleading, intentionally risky loans to people who couldn’t otherwise qualify for comparable loans. | suit |
| 2-Jul-2008 | US | July 2: According to the American Bankers Association, the share of delinquencies for home equity lines of credit has nearly doubled in the last year. 1.1 percent of all home equity loans were delinquent in the first quarter; up from just 0.6 for the same period in 2007. | |
| 10-Jul-2008 | US | Foreclosure filings for June 2008 have jumped 53 percent from this time last year. According to Realty Trac, foreclosure filings were reported on 252,363 homes last month – the second straight month in which more than a quarter of a million properties received foreclosure filings. | Foreclosure statistics |
| 7-Sep-2008 | US | US government injects $100 bn each in Freddie Mac and Fannie Mae, and announced it would buy mortgage bonds issued by the two GSEs and provide unlimited liquidity facility until the end of 2009 | Rescue |
| 17-Sep-2008 | US | AIG receives bridge loan of $85 billion from the US government to remain afloat in order to sell its assets | Bailout |
| 29-Sep-2008 | Belgium | Belgian government buys 49 percent of Fortis' Belgian banking operations for 4.7 billion EUR | Rescue |
| 29-Sep-2008 | Netherlands | Dutch government pays 4 billion EUR for Dutch banking operations of Fortis | Rescue |
| 29-Sep-2008 | Luxembourg | Government agrees to pay 2.5 billion EUR for 29 percent of Luxembourg operations of Fortis bank | Rescue |
| 3-Oct-2008 | US | Congress passes PL110-343 (Emergency Economic Stabilization Act) of 2008, establishing the OFS (Office of Financial Stability) within the Treasury and the Troubled Asset Relief Program (TARP) and authorizing Treasury to spend up to $700 billion to purchase troubled assets. | |
| 6-Oct-2008 | Iceland | Iceland passes legislation that allows the government to nationalize, merge, or force ailing banks into bankruptcy. The new bill also allows the government to take over housing loans held by the banks and put them into a government housing fund | |
| 14-Oct-2008 | US | Treasury announces that it will purchase up to $250 billion in financial firms’ preferred stock under TARP via CPP. Nine major financial institutions agree to participate in CPP. Treasury issues executive compensation guidelines for three TARP program areas: CPP, Troubled Asset Auction Program, and Systemically Significant Failing Institutions | TARP |
| 20-Oct-2008 | US | Treasury, the Federal Reserve, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation (FDIC) issue application guidelines and other documents for all banks wishing to participate in CPP. | TARP |
| 28-Oct-2008 | US | Under CPP, Bank of America receives $15 billion | TARP |
| 10-Nov-2008 | US | Treasury announces that it will purchase $40 billion in senior preferred stock from the American International Group (AIG) under SSFI. | TARP |
| 23-Nov-2008 | US | Treasury, FDIC, and the Federal Reserve enter into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital, including equity investment of $20 billion in Citigroup | TARP |
| 25-Nov-2008 | US | Treasury announces allocation of $20 billion to back Term Asset-backed Securities Loan Facility (TALF), a $200 billion lending facility for the consumer asset-backed securities market established by the Federal Reserve Bank of New York. | TALF |
| 25-Nov-2008 | US | Treasury purchases $40 billion in preferred stock and warrants from AIG under SSFI, as announced on November 10, 2008 | TARP |
| 25-Nov-2008 | US | The Federal Reserve Board on Tuesday announces the creation of the Term Asset-Backed Securities Loan Facility (TALF), a facility that will help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA). | TALF |
| 15-Dec-2008 | US | Neil Barofsky sworn in as Special Inspector General of SIGTARP (The Office of the Special Inspector General for the Troubled Asset Relief Program, which was created by Section 121 of the Emergency Economic Stabilization Act of 2008 (“EESA”). | TARP |
| 29-Dec-2008 | US | Treasury announces purchase of $5 billion in senior preferred equity from GMAC LLC and agrees to loan $1 billion to support its reorganization as a bank holding company | TARP |
| 31-Dec-2008 | US | Treasury purchases about $15 billion in preferred stock and warrants from seven financial institutions under CPP. | TARP |
| 31-Dec-2008 | Treasury purchases $20 billion in preferred stock and warrants from Citigroup that it announced on November 23, 2008, under the newly created Targeted Investment Program (TIP). | ||
| 9-Jan-2009 | US | Bank of America receives an additional $10 billion once its merger with Merrill Lynch was completed on January 1, 2009 | TARP |
| 16-Jan-2009 | US | Treasury, the Federal Reserve, and FDIC announce the terms of the guarantee agreement with Citigroup announced on November 23, 2008, providing protection against the possible losses on an asset pool of approximately $301 billion of loans and securities. | TARP |
| 16-Jan-2009 | US | Treasury, the Federal Reserve, and FDIC enter into an agreement today with Bank of America to provide guarantees, liquidity access, and capital, including protection against possible losses on approximately $118 billion assets and purchase of $20 billion in preferred stock under TIP. | TARP |
| 16-Jan-2009 | US | Treasury purchases about $1.5 billion in preferred stock and warrants from 39 institutions under CPP. | TARP |
| 10-Feb-2009 | US | The Federal Reserve Board announced that it is prepared to undertake a substantial expansion of the Term Asset-Backed Securities Loan Facility (TALF). The expansion could increase the size of the TALF to as much as $1 trillion and could broaden the eligible collateral to encompass other types of newly issued AAA-rated asset-backed securities, such as commercial mortgage-backed securities, private-label residential mortgage-backed securities, and other asset-backed securities. An expansion of the TALF would be supported by the provision by the Treasury of additional funds from the Troubled Asset Relief Program. | TALF |
| 3-Mar-2009 | US | Department of the Treasury and the Federal Reserve Board announce the launch of the Term Asset-Backed Securities Loan Facility (TALF), as a component of the Consumer and Business Lending Initiative (CBLI). | TALF |
| 10-Jun-2010 | Billionaire investor George Soros says “we have just entered Act II” of the crisis as Europe’s fiscal woes worsen and governments are pressured to curb budget deficits that may push the global economy back into recession, Bloomberg reports. “The collapse of the financial system as we know it is real, and the crisis is far from over,” Soros says at a conference in Vienna. “Indeed, we have just entered Act II of the drama.” |