November 26, 2008 / 2:04 PM / 11 years ago

TIMELINE: Financial crisis since October

(Reuters) - Here is a chronology of the global financial crisis since October:

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

October 3 - The U.S. House of Representatives passes a revised $700 billion U.S. bailout plan, which will take toxic mortgage assets off financial companies.

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

October 8 - The U.S. Federal Reserve leads a coordinated, global round of emergency interest rate cuts.

October 9 - Iceland, whose prime minister warned of “national bankruptcy,” takes control of its biggest bank, Kaupthing, the third major Icelandic bank to be taken over by the state.

October 10 - Finance ministers and central bankers from the Group of Seven meet in Washington. They pledge to prevent big banks from collapsing and to work together to stem the crisis. The International Monetary Fund backs the G7 plan the next day.

October 12 - European leaders meeting in Paris rush out plans to help banks through the crisis.

October 13 - Britain wades in with 37 billion pounds ($64 billion) of taxpayers’ cash for three major banks — Royal Bank of Scotland, HBOS and Lloyds TSB to help them survive.

October 14 - Japan joins the global push, saying it could inject public funds into regional banks. The Nikkei surges more than 14 percent — the biggest one-day gain in its history.

— Iceland’s stock market plunges 76 percent as it resumes trading.

— The United States offers to take $250 billion worth of stakes in nine top banks. Treasury Secretary Hank Paulson says government part-ownership of banks was “objectionable” but vital to tackle the crisis.

October 18 - U.S. President George W. Bush meets with French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso. They agree to hold global summits on the crisis.

October 19 - South Korea unveils rescue package worth more than $130 billion, offering state guarantee on foreign debt and promising to recapitalize financial firms.

October 27 - Iceland raises interest rates by a massive 6 percentage points to 18 percent, a surprise move that aims to please the IMF and restore trust in its shattered currency.

October 29 - The IMF and the EU agree to a $25.1 billion economic rescue package for Hungary. It is the biggest for an emerging market economy since the global crisis began.

— The United States cuts interest rates by half a percentage point to 1.0 percent. China cuts its interest rate to 6.66 percent from 6.93 percent and Norway also cuts its rate.

October 30 - Japan unveils a 5 trillion yen ($51 billion) package of spending measures to support its economy.

— Germany plans steps worth up to 25 billion euros ($32 billion) to boost business.

— Austria’s Erste Group Bank will boost its capital with a 2.7 billion euro ($3.4 billion) equity injection from the government. The bank posted a 17 percent drop in Q3 profit.

October 31 - Barclays Bank says it plans to raise 7.3 billion pounds ($12.06 billion) in additional capital from outside investors, including Gulf states Qatar and Abu Dhabi.

— The Bank of Japan cuts its benchmark overnight call rate for the first time in seven years, to 0.30 percent from 0.50 percent.

November 4 - Democratic candidate Barack Obama’s win in the U.S. presidential election, ending a source of uncertainty for global investors.

November 6 - The Bank of England cuts rates by 1.5 points to 3 percent, the lowest level in more than half a century. The ECB reduces its benchmark interest rate by 0.5 percentage point to 3.25 percent.

November 12 - Bank of England says that Britain’s economy will shrink sharply in 2009 and that inflation could be less than 1 percent.

November 13 - Germany says its economy, Europe’s largest, contracted by 0.5 percent in the third quarter, putting it in recession for the first time in five years.

November 15 - World leaders pledge rapid action at a G20 summit to rescue a weakening global economy, setting out plans to toughen oversight of major global banks and to try for a breakthrough in trade talks by year’s end.

November 17 - Japan becomes the latest major economy to fall into recession, with France close behind.

November 23 - The United States announces a rescue package for Citigroup Inc, agreeing to shoulder most losses on about $306 billion of the bank’s risky assets. A further $20 billion of new capital is offered the next day.

November 24 - Britain’s finance minister Alistair Darling, says he will cut sales tax and extend help for small businesses, low earners and households in a package worth 20 billion pounds.

November 25 - The U.S. Federal Reserve unveils an $800 billion plan to buy mortgage-related debt and back consumer loans. Of this, $600 billion is to buy mortgage-related debt and securities. The remainder is to support consumer debt securities.

November 26 - European Commission chief Jose Manuel Barroso proposes a 200 billion euros ($260 billion) fiscal stimulus package to revive the group’s struggling economies.

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