• Most Popular
  • Most Shared

CHRONOLOGY-Financial chaos shakes markets

Wed Oct 8, 2008 8:34am EDT

Stocks

   

Oct 8 (Reuters) - Here is a chronology of a month of global market chaos which has claimed some of the world's best known financial institutions as victims.

Stocks  |  Bonds  |  Global Markets  |  China  |  Russia

Sept. 14/15 - Investment bank Lehman Brothers Holdings Inc (LEHMQ.PK) files for bankruptcy protection; Merrill Lynch & Co Inc MER.N to be taken over by Bank of America Corp (BAC.N).

Sept. 16 - Federal Reserve announces plan for $85 billion loan to American International Group Inc (AIG.N) in return for 80 percent stake in the insurer; Britain's Barclays (BARC.L) buys parts of Lehman's North American assets for $1.75 billion.

Sept. 17 - British bank Lloyds TSB Group Plc (LLOY.L) agrees to rescue rival HBOS Plc HBOS.L, scooping up Britain's biggest home loan lender in an all-share deal.

Sept. 18 - The UK Financial Services Authority imposes a temporary ban on short-selling financial stocks, a move echoed in other centres.

Sept. 19 - U.S. Treasury Secretary Henry Paulson calls for the government to spend billions of dollars to take toxic mortgage assets off financial companies to restore financial stability. News of the plan helps world stock markets soar.

Sept. 20 - Details emerge of the $700 billion U.S. plan.

Sept. 21 - Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) become bank holding companies regulated by the Fed.

Sept. 22 - Nomura Holdings Inc (8604.T) says it will buy Lehman's franchise in Asia Pacific and acquires Lehman's business in Europe. Mitsubishi UFJ Financial (8306.T) agrees to buy up to 20 percent of Morgan Stanley for $8.5 billion.

Sept. 23 - AIG signs definitive agreement for up to $85 billion in borrowings from the Fed, the main part of a rescue plan that will see it take a 79.9 percent stake in the insurer.

Sept. 24 - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) says it will buy up to 9 percent of Goldman, which also announced plans to sell $2.5 billion in common stock.

-- The FBI says it is expanding its probe of possible corporate fraud related to the U.S. mortgage market collapse. The probe will include Fannie Mae (FNM.N) and Freddie Mac (FRE.N) which were effectively nationalised on July 13.

Sept. 25 - 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 (JPM.N) for $1.9 billion.

Sept. 29 - Britain announces the nationalisation of mortgage lender Bradford & Bingley Plc BB.L. Spain's Banco Santander SA (SAN.MC) will buy its retail deposits and branch network. Banking and insurance company Fortis NV (FOR.BR) is bailed out by Belgian, Dutch and Luxembourg governments.

-- U.S. House of Representatives rejects the $700 billion rescue plan.

Sept. 30 - World stocks fall but fears of a major meltdown ease as European losses are muted.

-- EU regulators endorse a 6.4 billion euro public bailout of Dexia SA (DEXI.BR) (DEXI.PA), the Belgian-French financial services group.

Oct. 1 - U.S. Senate passes the bailout plan.

Oct. 2 - Irish lawmakers vote to enact radical legislation guaranteeing Irish bank deposits and debts up to a total of 400 billion euros ($554 billion).

Oct. 3 - The U.S. House of Representatives passes a revised bailout plan.

-- Wells Fargo & Co says it has agreed to buy Wachovia Corp WB.N for about $16 billion, thwarting a planned Citigroup Inc (C.N) deal announced on Sept. 29. However Citigroup wins a court order on Oct. 4 blocking the deal until the court rules otherwise. The two remain locked in an intense battle.

-- The Dutch government buys Fortis for 16.8 billion euros ($23.28 billion). Belgium and Luxembourg scramble the next day to find a buyer for the remainder of the company.

Oct. 4 - European leaders, meeting in Paris, commit to ensure the stability of banking and financial systems.

Oct. 5 - Germany pledges to guarantee private deposit accounts. Germany also clinches a revised rescue deal for lender Hypo Real Estate HRXG.DE after banks and insurers pulled out of a state-led 35 billion euro ($48.5 billion) rescue programme.

Oct. 6 - France's BNP Paribas scoop up the assets of Fortis in Belgium and Luxembourg for 14.5 billion euros ($19.71 billion) to stem a cash drain on Fortis and Dexia.

Oct. 7 - Iceland, facing down a threat of "national bankruptcy", takes over Landsbanki LAIS.IC, its second-largest bank and props up its battered currency.

-- Iceland seeks loan from Russia which unveils an aid package for its own banks.

Oct. 8 - The U.S. Fed leads a coordinated, global round of emergency interest rate cuts. China, the European Central Bank (ECB) and central banks in Britain, Canada, Sweden and Switzerland also cut rates.

-- Britain offers to pump at least 50 billion pounds ($87.2 billion) into its biggest retail banks to help them survive.

(Writing by David Cutler and Gill Murdoch, Editorial Reference Units in London and Beijing; Editing by Quentin Bryar)



More from Reuters

Regulator approves millions for Fannie, Freddie execs

WASHINGTON (Reuters) - The top U.S. housing regulator said on Thursday it approved multimillion dollar pay packages for the chief executives of mortgage giants Fannie Mae and Freddie Mac.

Senate Majority Leader Harry Reid (D-NV) (C) walks with Senator Christopher Dodd (D-CT) (R) and Senator Max Baucus (D-MT) after the U.S. Senate approved President Barack Obama's healthcare overhaul on Capitol Hill in Washington, December 24, 2009.  REUTERS/Jim Young

Reid delivers on healthcare

Party-line Senate vote passes bill that would extend health coverage to tens of millions of uninsured Americans, but it's not law yet.  Full Article 

A security guard walks past cars in a Geely Automobile Holdings Ltd. factory in a Shanghai suburb September 28, 2006.REUTERS/Aly Song

China in auto power play

It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos.  Commentary | Video