TIMELINE: Global financial turmoil

(Reuters) - The past two weeks have seen unprecedented global market turmoil. Europe's biggest bank rescue of the financial crisis to date took shape on Monday ahead of a U.S. lawmaker vote on a $700 billion toxic debt fund.

Here is a day by day chronology of events:

SUNDAY SEPT 14

- Investment bank Lehman Brothers files for bankruptcy protection, rival Merrill Lynch agrees to be taken over by Bank of America.

- The U.S. Federal Reserve says for the first time it will accept stocks in exchange for cash loans and 10 of the world's top banks agreed to establish a $70 billion emergency fund, with any one of them able to tap up to a third of that.

MONDAY SEPT 15

- Insurer American International Group Inc (AIG), says it is struggling for survival after losing some 92 percent of its value this year.

TUESDAY SEPT 16

- The U.S. Federal Reserve Board says the Federal Reserve Bank of New York will lend up to $85 billion to AIG, in a plan aimed at saving the company from a "disorderly failure" that could damage the global economy.

-- The Federal Reserve says under the two-year facility, the U.S. government will receive a 79.9 percent equity interest in the insurer and has the right to veto payment of dividends to common preferred shareholders.

WEDNESDAY SEPT 17

- British bank Lloyds TSB agrees to buy rival HBOS Plc, scooping up Britain's biggest home loan lender in an all-share deal which values HBOS at over 12 billion pounds ($22.3 billion).

THURSDAY SEPT 18

- The Fed expands its currency swap lines to $247 billion, increasing the line with the ECB to $110 billion and the line with the SNB to $27 billion, while opening new swap facilities with the Bank of Japan of $60 billion, the Bank of England of $40 billion, and the Bank of Canada of $10 billion.

-- The Lloyds TSB deal for HBOS Plc is officially announced as the UK government eases competition rules.

-- The UK Financial Services Authority imposes a temporary ban on short-selling financial stocks.

FRIDAY SEPT 19

- Treasury Secretary Henry Paulson calls for the U.S. government to spend hundreds of billions of dollars to take toxic mortgage assets off the books of financial firms to restore financial stability.

- News of the bailout plan lifts shares, with the benchmark S&P 500 posting its best two-day rally in 21 years and Britain's top index notching up the biggest gain in its 24-year history.

SATURDAY SEPT 20

- The Bush Administration asks Congress for $700 billion to bail out firms burdened with bad mortgage debt, seeking extraordinary authority. Paulson will have sweeping powers over the funds.

- A U.S. bankruptcy judge approves a revised version of British bank Barclays PLC's purchase of the core U.S. business of Lehman worth about $1.75 billion.

SUNDAY SEPT 21

- Goldman Sachs and Morgan Stanley are granted approval to become bank holding companies regulated by the Fed, effectively killing off the investment banking model.

MONDAY SEPT 22

- Nomura Holdings Inc says it will buy Lehman's franchise in Asia Pacific, including Japan and Australia and 3,000 staff. It also acquires Lehman's business in Europe.

- Morgan Stanley agrees to sell an equity stake of as much as $8.5 billion to top Japanese bank Mitsubishi UFJ Financial Group Inc.

TUESDAY SEPT 23

- Treasury Secretary Henry Paulson tells lawmakers that a bailout is "embarrassing" but needed to stave off a deep recession and restore confidence.

WEDNESDAY SEPT 24

- Warren Buffett's Berkshire Hathaway says it will buy up to 9 percent of Goldman, which also announced plans to sell $2.5 billion in common stock.

- CNN reports that the FBI was investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc and insurer American International Group Inc and their senior executives for potential mortgage fraud.

FRIDAY SEPT 26

- Washington Mutual is closed by the U.S. government, in by far the largest failure of a U.S. bank. Its banking assets are sold to JPMorgan Chase for $1.9 billion.

SUNDAY SEPT 28

- Congressional leaders from both parties say they have a tentative agreement on the $700 billion fund.

MONDAY SEPT 29

- Britain announces the nationalization of troubled mortgage lender Bradford & Bingley. Spanish bank Santander will buy its retail deposits and branch network.

-- The Belgian, Dutch and Luxembourg governments agree to inject 11.2 billion euros ($16.4 billion) into Benelux banking and insurance company Fortis,

-- The House of Representatives is expected to vote on the $700 billion fund on Monday.

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