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Business Sues for Loss of Sales

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Financial Melt-down: Chronolgy of Events
                    USA                            UK                                Europe                               RoW               Text in Red - Government action
                                                                                                       2007                                                                                                                                                                                          2008
              Jan    Feb      Mar       Apr             May             Jun                 Jul                Aug               Sep              Oct              Nov               Dec             Jan               Feb             Mar              Apr             May              Jun                Jul            Aug                Sep                Oct            Nov              Dec
                                                                                                                                                                                                                                                                                                                     4. HSBC
                                                                                                                                                                                                                                                                                                                     announces
                                                                                                        1. IKB warns of   13 Northern                                                                            13. Bush                                                                                                              8. Nationwide                                       11. Bank of
                                                                                     24-26                                                                                                    2. Weak data                                                                                                           28% fall in                                          3. Soc gen
                                                                 14. Rumours of                         losses in         Rock gets         10. Hope Now      1. Bank of      10. UBS raises                     announces        17. JP                                            6. Lehman                                          merge with          3. Wells Fargo                  America
                                                                                     Countrywide                                                                                              published in                                                                                                           profits and                                          announces 84%
                                                                 Bear Stearns                           subprime and      emergency         Alliance          America buys    CHF 13bn GIC                       economic         Morgan buys                                       Bros seeks                                         Derbyshire and      buys                            announces
                                                                                     reports drop in                                                                                          US -                                            8. IMF warns                                                           warns of                                             slump in profits
                                                                 (BS) difficulties                      gets $3.5bn       liquidity from    established       Countrywide     and Middle East                    stimulus         BS                                                capital                                            Cheshire            Wachovia                        35,000 job
                                                                                     earnings                                                                                                 purchasing                                      losses could                                                           worst                                                ofr 3Q
                                                                                                        from parent       Bank                                                                                                                                                                                                         Building Socs                                       losses
                                                                                                                                                                                              mgrs and           package -                    exceed $1                                                              conditions
                                                                                                                                                                                              labour market      $168 bn                      trillion                                                               since 30's

                                                                                                                          19 onwards -      15. Citi, BOA                                                                                                                                            14. A+L                                                                                Jan 09 -
                                                                 15. Bear            24 - 26 NAHB       8. 3 ABCP                                             West LB and
                                                                                                                          string of news    and Morgan                        19. Barclays                                                                                                           Board                             15. Merril Lynch    6 Paribas                        Nissan
                                                                 Stearns             reports new        programmes                                            Nordbank
                                                                                                                          of writedowns     form ABCP                         sues BS for                        13 AIG                                                                              recommend                         and Bank of         buys Fortis                      announces
                                                                 rumoured            homes sales        extend                                                support $15bn
                                                                                                                          CEO's             relief pool                       fraud             15. CitiGroup    increases loss                                                                      Santander                         America merge       (Belgium)                        1,300 job
                                                                 negotiations        slide              maturities                                            SIV
                                                                                                                          resigning etc     (MLEC)                                              announce         est by $4 bn +                                                                      take-over                                                                              losses
                                                                                                                                                                                                $18bn 4Q loss    on CDS
                                                                                                        13. 4 more                                          Citibank takes                                       19 Credit                        21. RBS                           19. FBI
                                                                                                                                                                              19. Morgan
                                                                 Cheyne Losses                          ABCP                                24 on Financial $49 bn in house                                      Suisse writes                    announces                         arrests 406                                        22. MUFG buys
  Co                                                                                                                                                                          announce                                                                                                                                                                                                      Jan 09 - M+S
                                                                 $75m in sub                            programmes                          guarantors      and raises                        15 - 30 String     down $2.8bn                      £12bn rights                      in relation to                                     stake in Morgan
Announce                                                                                                                                                                      heavier losses                                                                                                                                                                                                Cuts 1,230 jobs
                                                                 prime                                  extend                              announce losses $7.5bn from                                                                                                                                                                Stanley
 ments/                                                                                                                                                                       and write-dwons of write downs     after issuing                    issue going                       mortgage
                                                                                                        maturities                                          Abu Dhabi                         announced          2007 results                     back on word                      scams
News / etc                                                                                                                                                                                                                                                                          19. 2 BS
                                                                                                                                                              25. HSBC                                                                            23.                               workers          21. HBOS
                                                                                                                                                                                                                                                                   22. UBS                                                                                                                  17 Dec
                                                                                                        14. Market                                            announce $45                    21. Soc Gen                                         Nationwide                        charged with     share issue                       22 Nomura buys
                                                                                                                                                                              Morgan raises                                                                        l;aunches                                                                                                                National
                                                                                                        disruption in                                         bn SIV back                     announces          19 Soc Gen                       offer to                          crimes           £4bn taken                        Lehman Asia /
                                                                                                                                                                              $5bn from China                                                                      $15.5bn                                                                                                                  Express cuts
                                                                                                        Canada                                                onto balance                    $7.2 bn loss       raises $5.5bn                    Portman                           relating to      up only 8% of                     Europe ops
                                                                                                                                                                                                                                                                   rights issue                                                                                                             750 jobs
                                                                                                                                                              sheet                           from rogue         emergency                        Building Soc                      sub-prime        shareholders
                                                                                                                                                                                              trader             share issue                      recommended                       hedge funds
                                                                                                                                                                                                                                  28                                                25. Barclays                                       22. Goldman
                                                                                                                                                                                                                 28 AIG reports   Nationwide                                        launches         31. Deutsch     28 Bradford       Sachs and                                            12 Santander
                                                                                                        17. Fed issues
                                                                                                                                                                              21. MLEC                           $11.1bn write    predicts                                          £4.5bn           Bank reports    and Bingley       Morgan Stanley                                       cuts 1,900 jobs
                                                                                                        statement on
                                                                                                                                                                              abandoned                          down on sub-     House price                                       Quatari          $5 bn write     posts £26.7m      apply for                                            across its B.
                                                                                                        growth
                                                                                                                                                                                                                 prime            fall revising                                     investmenet      down            loss for 1/2 yr   regulated Bank                                       Socs
                                                                                                                                                                                                                                  previous no                                       plan                                               status
                                                                                                        23 Bank of                                                                                                                                                                                                   31.
                                                                                                                                                                                                                 MBIA                                                                                UK House                                                                               4. Nomura
                                                                                                        America invests                                                                                                                           30. 1st                                                            Commerzban        29 Santander
                                                                                                                                                                              Merrill raises                     completes                                                                           prices                                                                                 cuts 1,000 jobs
                                                                                                        $2bn in                                                                                                                                   Annual fall in                                                     k and             buys Bradford
                                                                                                                                                                              $6.2bn capital                     $1.1bn stock                                                                        biggest fall                                                                           HMRC cuts
                                                                                                        Countrywide                                                                                                                               House prices                                                       Dredner           and Bingley
                                                                                                                                                                                                                 sale                                                                                since 1991                                                                             3,400 jobs
                                                                                                        Financial                                                                                                                                 for 12 yrs                                                         merge             deposit business
                                                                                                                                         11-19. Moddy's
                                                                                                                                         and S+P                                                                                  14. Fed                                                                                              2. Treasury lifts
                                                                 15. Moody's                            1. Moody's        5. Moody's                                                                                                                                                                 Fed finalise                                                                           4. France
                                                                                     10-12 S+P                                           downgrade                                                              22 Northern       issues          10. BoE cuts                                                                         stamp duty to                    3. IMF loans
                                                                 downgrades                             reports           downgrades                                          11 Fed cuts 25    14 - 28 Fed                                                                                          rules for                                             7 Landsbanki                     announce
                                                                                     downgrades                                          2,500 subprime                                                         Rock              emergency       rates by                                                                             £175k in effort                  $16.4 bn to
                                                                 ABS sub prime                          securitisations   Cheyne Finance                                      basis points      funds liquidity                                                                                      "responsible                                          Nationalised                     €26bn
                                                                                     ABS securities]                                     bonds worth                                                            Nationalised      funding to      0.25%                                                                                to kick start                    Ukraine
                                                                 stocks                                 re-ratings        and 4 SIV's                                                                                                                                                                                                                                                       stimulus plan
                                                                                                                                         $80bn book                                                                               BS                                                                 " mortgage                        market
                                                                                                                                         value                                                                                                                                                       lending

                                                                                                                                                                                                                                                  Congress
                                                                                                                                                                                                                                                  passes bill                                                                          16 AIG in                                            11. ECB, BoE,
                                                                                                                                                                                                                                                                                                                                                                          6 BoE slashes
                                                                                                                                                                                                                                                  offering                                                                             bailout $80bn   8 Kaupthing                          Sweden +
                                                                                                                                                                                                                                                  $300bn                                                                                                                  interest rates
                                                                                                                                                                                                                                                                                                                                       and US plans to Nationalised                         Denmark cut
                                                                                                                                                                                                                                                  guarantee on                                                                                                            1.5% to 3%
                                                                                                                                                                                                                                                                                                                                       buy toxic debt                                       interest rates
                                                                                                                                                                                                                                                  re-financed
                                                                                                                                                                                                                                                  mortgage

                                                                                                                                                                              12. Central
                                                                                                                                                                                                                                                                                                     14 Fed                                                               9 China
                                                                                                                                            22-23 S+P                         Banks take co-    14-28 ECB,                                                                                                                             18. Lloyds TSB
                                                                                     10-12Fitch                                                                                                                                                                                                      Nationalise                                                          announces
                                                                                                        9. ECB injects                      downgrades                        ordinated         Swiss and                                                                                                                              agree purchase 9 ING bail out
                                                                                     downgrades                                                                                                                                                                                                      Freddie Mac                                                          $586 bn
                                                                                                        E95bn                               CDOs worth                        action to         BoE funds                                                                                                                              of HBOS Govt      €10bn
                                                                                     CDO's                                                                                                                                                                                                           and Fannie                                                           stimulus plan
                                                                                                                                            $3.7bn                            improve           liquidity                                                                                                                              bail out $9.7bn -
                                                                                                                                                                                                                                                                                                     Mae                                                                  over 2 yrs
  Credit                                                                                                                                                                      liquidity                                                                                                                                                Short selling
 Rating /                                                                                                                                                                                                                                                                                                                              banned
 GOVT.
                                                                                                                                                                                                                                                  21. BoE
  Action                                                                                                9. Fed injects                      22-23 Moody's                                                                                                                                                                              28 -30 Fortis,
                                                                                     10-12 Moody's                                                                            19. S+P           22. Fed                                           announces
                                                                                                        $38bn + other                       and Fitch also                                                                                                                                                                             Glitnir and Hybo
                                                                                     downgrades                                                                               downgrades        implements                                        £50bn plan
                                                                                                        central banks                       issue                                                                                                                                                                                      bailed out ±
                                                                                     sub-prime                                                                                monolines         0.75% rate cut                                    for bank
                                                                                                        follow                              downgrades                                                                                                                                                                                 €80bn
                                                                                                                                                                                                                                                  liquidity
                                                                                                                                                                                                18 - 30 Fitch                                                                                                                                          19 South
                                                                                                                                                                              19. S+P           downgrades                                                                                                                                             Korea
                                                                                                        16. Moody's                         24 on - Fitch
                                                                                                                                                                              downgrade         Ambac and ors                                                                                                                                          annou8nces         20 IMF loans
                                                                                                        downgrades                          announce likley                                                                                                                                                                            29 Bradford and $130bn
                                                                                                                                                                              gaurantorr to     - effects                                                                                                                                                                 $2.1 bn to
                                                                                                        2006 subrpirme                      cut in monoline                                                                                                                                                                            Bingley
                                                                                                                                                                              junk - triggers   290,000                                                                                                                                                rescue             Iceland
                                                                                                        deals                               insurer rating
                                                                                                                                                                              cash calls        structured                                                                                                                             Nationalised    package for
                                                                                                                                                                                                products                                                                                                                               $32.5 bn        Banks
                                                                                                                                                                                                29 Fed
                                                                                                        21. S+P                                                                                 announces                                                                                                                              29 Fed takes                       23 Citigroup
                                                                                                        downgrades 2                                                                            further .5%                                                                                                                            $12bn stake in                     Bail out $20 bn
                                                                                                        SIV-lites                                                                               rate cut                                                                                                                               Wachovia
                                                                                                                                                                                                30 - o n All
                                                                                                                                                                                                Rating
                                                                                                                                                                                                                                                                                                                                                           20. Sweden   25 IMF loans
                                                                                                                                                                                                agencies
                                                                                                                                                                                                                                                                                                                                                           guarantees   $7.6 bn to
                                                                                                                                                                                                downgrade
                                                                                                        28. S+P                                                                                                                                                                                                                        30 Dexia bail       $205bn loans Pakistan
                                                                                                                                                                                                monoline
                                                                                                        downdrades CP                                                                           insurers                                                                                                                               out $9.2bn
                                    2. New         3. UBS                                               1. Bear Stearns                                                                                                                                                                                                                                                   Woolworths
                                                                                                                                                                                                                                                                   2. 54% rise in                    13 IndyMac
                                    Century        closes                                               freezes           25. HSBC                                                                                                                                                                                                                                        Bankruptcy
                                                                 22 Merril Lynch     Aus hedge                                                                                                                                                                     insolvencies                      2nd biggest                       15. Lehman                                           9. Landsbanki
                                    (sub-prime     Dilons Read                                          withdrawlas at    closes US                                                                                                                                                                                                                                       (Nov) 27,000
                                                                 closes hedge        fund freezes                                                                                                                                                                  as 850                            bank                              Brothers                                             enters formal
                                    lender)        fund - Note                                          3rd fund 6        mortgage unit -                                                                        28 Peleton                                                                                                                                               jobs lost 15 UK
                                                                 funds               withdrawals                                                                                                                                                                   companies                         collapse in                       Bankruptcy                                           Bankruptcy
                                    files for Ch   EU                                                   American Home     DecisionOne                                                                            closes $2bn                                                                                                                                              Retailers in
                                                                                                                                                                                                                                                                   file in Q1                        US
                                    11             association                                          files for Ch 11                                                                                          ABS fund                                                                                                                                                 danger
Insolvency
                                                                                                                                                                                                                                                                                                                                                                                            Zavvi,
     /
                                                                                                        Union                                                                                                                                                                                                                                                                               Whittards,
 Cessation                                                       20-22 News 2                                                                                                                                                                                                                                                          25 Wa Mu is
                                                                                                        Investment                                                                                                                                                                                                                                                                          Officers Club,
of business                                                      BS funds to                                                                                                                                                                                                                                                           biggest US bank
                                                                                                        freezes                                                                                                                                                                                                                                                                             Waterford
                                                                 close                                                                                                                                                                                                                                                                 failure
                                                                                                        withdrawls                                                                                                                                                                                                                                                                          Wedgewood,
                                                                                                                                                                                                                                                                                                                                                                                            Viyella….
                                                                                                                                                                                                                                                                                                                                                                                             15. Maddof's
                    US                                                                                  9. BNP Paribas                                                                                                                                                                                                                                                    5 US Bank
                                                                                                                          1 US Bank         1 US Bank                                           1 US Bank                         1 US Bank                        2 US Bank                         3 US Bank       3 US Bank         3 US Bank           4 US Bank                            "ponzi"
                    Bank                                                                                freezes                                                                                                                                                                                                                                                           Failures + 3 in
                                                                                                                          Failure           Failure                                             Failure                           Failure                          Failures                          Failures        Failures          Failures            Failures                         scheme fails -
                    Failure                                                                             redemptions                                                                                                                                                                                                                                                       Dec (at 12/12/08)
                                                                                                                                                                                                                                                                                                                                                                                                 $50bn




                                                                                                                                                                                                                       Prepared by Clive Thompson 11/10/2010                                                                                                                                                  Page 1
Sources:

BIS working paper 251 (a Preliminary assessment .. Of financial turmoil) 02/08
FT special report on Financial Crisis (via web 12/08)
BBC.co.uk report on Crisis (7521250.stm - 10/12/08),
Creditwritedowns.com (12/08)
fdic.com/bank (12/08)

				
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