CHRONOLOGY-Financial chaos shakes markets

Wed Oct 8, 2008 8:34am EDT
 
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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.

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.  Continued...

 

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