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TIMELINE: Global financial turmoil day by day
(Reuters) - Following is a day-by-day summary of recent events in the financial crisis:
SUNDAY SEPT 14
- Investment bank Lehman Brothers Holdings files for bankruptcy protection; rival Merrill Lynch & Co agrees to be taken over by Bank of America
- Federal Reserve says for the first time it will accept stock in exchange for cash loans, while 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 sum.
MONDAY SEPT 15
- American International Group reaches deal with New York state officials giving the insurer access to $20 billion of its own capital.
WEDNESDAY SEPT 17
- Lloyds TSB Group agrees to buy rival HBOS, scooping up Britain's biggest home loan lender in an all-share deal which values HBOS at over 12 billion pounds.
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 UK Financial Services Authority imposes a temporary ban on short-selling financial stocks, a move echoed in other centers.
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 companies 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 the FTSE 100 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.
- A U.S. bankruptcy judge approves a revised version of Barclays purchase of the core U.S. business of Lehman worth about $1.75 billion.
SUNDAY SEPT 21
- Goldman Sachs Group and Morgan Stanley are granted approval to become bank holding companies regulated by the Fed.
MONDAY SEPT 22
- Nomura Holdings 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.
TUESDAY, SEPT 23
American International Group signs "definitive" agreement for up to $85 billion in borrowings from the U.S. Federal Reserve, the main part of a rescue by the central bank that will see it take a 79.9 percent stake in the insurer.
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 says the FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers and American International Group and their senior executives for potential mortgage fraud.
FRIDAY SEPT 26
- Washington Mutual is closed by the U.S. government in the largest failure of a U.S. bank. Its banking assets are sold to JPMorgan Chase & Co 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 mortgage lender Bradford & Bingley. Spain's Banco Santander SA will buy its retail deposits and branch network.
-- Belgian, Dutch and Luxembourg governments agree to inject 11.2 billion euros (8.85 billion pounds) into Benelux banking and insurance company Fortis NV.
-- House of Representatives rejects the $700 billion rescue plan for the financial industry. Dow Jones posts its largest point decline ever while the S&P 500 has its worst day since 1987 with an 8.8 percent drop.
-- Wachovia agrees to sell most of its assets to Citigroup in a deal brokered by regulators.
TUESDAY SEPT 30
-- World stocks fall to near three-year lows but fears of a major meltdown ease as European losses are muted.
- EU regulators endorse a 6.4 billion euro public bailout of Belgian-French financial services group Dexia SA.
- Ireland pledges more than double its GDP to guarantee all bank deposits.
(Compiling by David Cutler, London Editorial Reference Unit; Editing by David Holmes)
