March 31, 2011 / 3:27 PM / in 8 years

Timeline: Most impactful events of the U.S. financial crisis

(Reuters) - The Federal Reserve on Thursday released the names of banks that borrowed from its main emergency lending facility during the financial crisis after having run out of legal appeals to block publication.

Below is a timeline of the most influential events that shaped the U.S. financial crisis.

Source: the Federal Reserve Bank of St. Louis

February 27, 2007: Freddie Mac says it will no longer buy the most risky subprime mortgages and mortgage-backed securities.

April 2, 2007: A leading subprime mortgage lender, New Century Financial Corp, files for Chapter 11 bankruptcy protection.

Aug-Dec 11, 2007: Fed cuts discount rate four times by a total of 1.5 percentage points to 4.75 percent, and continues to do so eight more times in 2008 as the economy weakens.

January 11, 2008: Bank of America announces plan to buy Countrywide Financial in a $4 billion all-stock deal.

March 24, 2008: New York Fed provides $29 billion in term financing to help JPMorgan buy Bear Stearns.

September 7, 2008: The U.S. government places Fannie Mae and Freddie Mac into conservatorship.

September 15, 2008: Lehman Brothers Holdings Inc files for Chapter 11 bankruptcy protection and Bank of America announces plan to buy Merrill Lynch & Co for $50 billion.

September 25, 2008: JPMorgan Chase acquires the banking operations of Washington Mutual Bank.

October 3, 2008: President Bush signs into law the Emergency Economic Stabilization Act, which creates the $700 billion Troubled Asset Relief Program, or TARP.

October 12, 2008: The Fed approves Wells Fargo’s acquisition of Wachovia Corp. The deal trumped Citigroup’s efforts to buy Wachovia’s retail bank operations with support from the U.S. government.

October 28, 2008: The Treasury buys $125 billion worth of preferred stock of nine banks in first TARP funding wave.

November 10, 2008: The Treasury buys $40 billion of AIG shares through TARP.

November 17, 2008: Lincoln National, Hartford Financial Services Group and Genworth Financial seek TARP funding.

November 18, 2008: Ford, General Motors and Chrysler executives seek TARP access for federal loans in Congressional testimony.

November 20, 2008: Fannie and Freddie suspend mortgage foreclosures until January 2009.

November 23, 2008: Citigroup and Bank of America are both bailed out again by the government. The Treasury gives both another $20 billion, and agrees to protect them from losses from some of their worst assets. Bank of America’s protection was never put in place.

December 15, 2008: The Fed approves PNC Financial Services Group Inc’s acquisition of National City Corp to create the fifth-largest U.S. bank.

December 19, 2008: The Treasury authorizes a TARP loan of up to $13.4 billion for GM and $4 billion for Chrysler.

December 24, 2008: The Fed approves conversion of GMAC Bank into a commercial bank and, as part of the agreement, GM reduces GMAC ownership interest to less than 10 percent.

December 29, 2008: The Treasury says it will buy $5 billion of GMAC equity and lend $1 billion to GM.

January 16, 2009: The Treasury announces it will lend $1.5 billion in TARP funds to Chrysler to extend new consumer auto loans.

February 17, 2009: President Barack Obama signs into law the American Recovery and Reinvestment Act, a $787 billion stimulus package.

February 25, 2009: The Fed, FDIC and other government offices announce plan to “stress test” banks by April 2009.

May 7, 2009: Regulators release results of stress tests on 19 biggest U.S. banks, all of which received TARP funds, and says 10 of them need to raise a combined $74.6 billion to withstand a possibly deeper recession.

June 1, 2009: GM Corp and three domestic subsidiaries announce they have filed to reorganize in bankruptcy.

November 1, 2009: CIT Group Inc files for bankruptcy protection under Chapter 11, wiping out the $2.3 billion stake the government bought in CIT through TARP in December 2008.

December 2, 2009: Bank of America says it will buy back all the stock it sold to the Treasury under TARP.

December 14, 2009: Citigroup and Wells Fargo make similar announcements.

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