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| | Year | Month | 2007 / 2008 Credit Crunch Timeline of Events | |
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| | 2007 | July | Credit Crunch begins with the subprime mortgage crisis in the United States | |
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| | 2007 | August | US Credit Crunch goes Global due to the interaction of world banks and Hedge Funds who also have subprime mortgage backed securities
Aug 9: Debt, due to defaults by subprime mortgage payers, results in the European Central Bank injects 95 billion euros into the European banking market.
Aug 10: The United States Federal Reserve (Fed) injects 43 billion US Dollars
US Housing problem kicks in | |
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| | 2007 | September | US Interest rates lowered
British Government take over Northern Rock a major UK bank
Internet bank NetBank goes bankrupt | |
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| | 2007 | December | ECB lends European commercial banks $500bn over the Christmas period to help ease the credit crisis | |
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| | Year | Month | 2008 Credit Crunch Timeline of Events | |
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| | 2008 | January | Down turn in stock markets | |
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| | 2008 | February | House prices continue to fall and jobs are cut
Houses continue to be repossessed
Leaders from the G7 group project worldwide losses from the US mortgage crisis could reach $400bn | |
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| | 2008 | March | March 16: Bear Stearns acquired by JPMorgan Chase avoiding bankruptcy
A £1bn hedge fund run by Peloton Partners collapses | |
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| | 2008 | April | Germany's Deutsche Bank warns of credit losses | |
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| | 2008 | May | Figures show that Retail and construction firms are hardest hit by the Credit Crunch | |
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| | 2008 | July | July 11: Indymac Bank is placed into the receivership
Banks report unprecedented losses | |
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| | 2008 | August | Washington Mutual, Morgan Stanley and Goldman Sachs come under pressure | |
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| | 2008 | September | September 7: Federal takeover of Fannie Mae and Freddie Mac
September 14: Merrill Lynch sold to Bank of America
Lehman Brothers go bankrupt
September 19: Bailout of the U.S. financial system by the Emergency Economic Stabilization Act of 2008 proposed by US Treasury Secretary Henry Paulson
September 23: Announced that the FBI investigating the possibility of fraud in 26 finance companies including Fannie Mae, Freddie Mac, Lehman Brothers and AIG | |
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| | 2008 | October | Europe sees effect of the credit crunch resulting in falling house prices, job losses and bankruptcies
The three major banks of Iceland are nationalized
Other European Bankspartially nationalized
Stock Markets fall
Global cuts in interest rates
In the UK Lloyds TSB allowed to start takeover plans of HBOS to avoid another Northern Rock style collapse with promise of support from British government
In UK the guarantee of bank deposits are raised from £35,000 to £50,000
G7 meet but fail to reach agreement | |
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| | 2008 | November | The US government agrees to rescue Citigroup | |
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| | 2008 | December | 1 December: The US recession is officially declared by the National Bureau of Economic Research
29 December: The US Treasury unveils a $6bn bail-out for GMAC (General Motors car loans)
Global stock markets report the biggest annual falls for 24 years | |
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| | Year | Month | 2007 / 2008 Credit Crunch Timeline of Events | |
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