2007
February 13, 2007
US mortgage risks begin to surface
HSBC raises $1.8 billion bad debt provision for US subprime mortgage business
Countrywide Financial Corp, the largest US subprime mortgage lender, cuts lending
New Century Financial, the second-largest US subprime mortgage lender, issues a profit warning
March 13, 2007
New Century Financial declares near bankruptcy
US stocks fell sharply, the Dow fell 2%, the S&P fell 2.04%, and the Nasdaq fell 2.15%
April 4, 2007
New Century Financial files for bankruptcy after laying off half of its workforce
April 24, 2007
US existing home sales fell 8.4% in March
June 22, 2007
US stocks retreated from highs, the Dow fell 1.37%, the S&P fell 1.29%, and the Nasdaq fell 1.07%
July 10, 2007
S&P downgrades subprime mortgage bonds, global financial markets fluctuate
July 19, 2007
Bear Stearns’ hedge fund on the verge of collapse
August 1, 2007
Macquarie Bank says investors in two of its high-yield funds face 25% losses
August 3, 2007
Bear Stearns says the US credit market is in the worst shape in 20 years
European and American stock markets plummeted across the board
August 5, 2007
Bear Stearns president Warren Spector resigns
August 6, 2007
American Home Mortgage, a real estate investment trust, files for bankruptcy protection
August 9, 2007
France’s largest bank BNP Paribas announced its involvement in US subprime bonds, most of the world’s stock indexes fell
Metal crude oil futures and spot gold prices plunged sharply
August 10, 2007
The US subprime crisis spreads, and the European Central Bank intervenes
August 11, 2007
Central banks around the world injected more than $326.2 billion in 48 hours to rescue the market
Fed injects $38 billion into banks three times a day to stabilize stocks
August 14, 2007
Dozens of companies including Walmart and Home Depot report huge losses from the subprime crisis
US stocks plummet to multi-month lows soon
August 14, 2007
The three major central banks in the United States, Europe, and Japan once again injected more than $72 billion to rescue the market
Asia-Pacific central banks inject more capital into the banking system
Economies may delay rate hikes
August 16, 2007
Shares of nation’s largest commercial mortgage lender plummet, face bankruptcy
US subprime crisis worsens, Asia-Pacific stocks suffer worst decline since 9/11
August 17, 2007
Fed cuts window discount rate by 50 basis points to 5.75%
August 20, 2007
Bank of Japan injects another 1 trillion yen into the banking system
ECB plans to step up rescue efforts
August 21, 2007
Bank of Japan injects another 800 billion yen into the banking system
RBA injects $3.57 billion into the financial system
August 22, 2007
Fed injects another $3.75 billion into the financial system
ECB adds 40 billion euros in refinancing operations
August 23, 2007
Bank of England lends £314m to commercial banks to fight the crisis
Fed injects another $7 billion into the financial system
August 28, 2007
Fed injects another $9.5 billion into the financial system
August 29, 2007
Fed injects another $5.25 billion into the financial system
August 30, 2007
Fed injects another $10 billion into the financial system
August 31, 2007
Bernanke says Fed will try to avoid credit crunch hurting economy
Bush promises government package to save subprime mortgage crisis
September 1, 2007
UK banks are cash-hungry
September 4, 2007
BIS, S&P disagree on the severity of the subprime crisis
September 18, 2007
Fed cuts federal funds rate by 50 basis points to 4.75%
September 21, 2007
Northern Rock bank run sees central bank governor Kim and Chancellor Darling in defense
September 25, 2007
The IMF pointed out that the US subprime mortgage crisis has far-reaching effects, but the agency also believes that governments should not over-regulate
October 8, 2007
EU holds a two-day meeting of finance ministers to discuss US economic slowdown and dollar depreciation
October 12, 2007
Inline to solve the subprime mortgage crisis, the US Treasury Department has begun to speak out and improve the regulatory structure.
October 13, 2007
The US Treasury Department helps major financial institutions create a $100 billion fund (superfund) to buy distressed mortgage securities
October 23, 2007
The American Bankruptcy Association reported that the number of consumers who filed for bankruptcy in September increased 23% year-on-year to nearly 69,000
October 24, 2007
Affected by the subprime mortgage crisis, the world’s top brokerage Merrill Lynch announced a loss of US$7.9 billion in the third quarter of 2007. The day before, Japan’s largest brokerage Nomura Securities also announced a loss of US$620 million in the quarter.
October 30, 2007
Europe’s largest Swiss bank by assets announced that it recorded its first quarterly loss in nearly five years in the third quarter of 830 million Swiss francs due to losses on subprime-related assets
November 9, 2007
After nearly two months, the three major banks, Bank of America, Citibank, and Morgan Stanley, agreed to spend at least $75 billion to help the market get out of the subprime mortgage crisis.
November 26, 2007
Bank of America begins to lead Citi, JPMorgan to raise $80 billion for superfund
November 28, 2007
US housing market indicators deteriorate across the board
Existing-home sales fell for the eighth straight month in October to an annual rate of 4.97 million, and inventory rose 1.9% to 4.45 million, the National Association of Realtors said
The S&P/Shiller US home price index fell 1.7% in the third quarter, the largest quarterly decline in the index’s 21-year history
December 4, 2007
Investment giant Buffett starts buying $2.1 billion in junk bonds issued by Texas utility TXU
December 6, 2007
Mortgage Bankers Association: Foreclosures climbed 0.78% in the third quarter
December 7, 2007
President Bush decides to freeze some mortgage rates for the next five years
December 12, 2007
The five major central banks of the United States, Canada, Europe, the United Kingdom, and Switzerland announced a joint rescue of the market, including short-term auctions, foreign exchange swaps, etc.
December 14, 2007
To avoid fire sales, Citigroup incorporates SIV as assets
December 17, 2007
ECB pledges to provide funds to eurozone financial institutions at fixed rates
December 18, 2007
Fed submits a package of reforms in response to the subprime mortgage crisis
ECB announces an additional two-week loan of around $500 billion to the eurozone banking system
December 19, 2007
Fed’s regular tender tool injects $20 billion into the market within 28 days
December 21, 2007
Superfund manager BlackRock announces no more superfunds
December 24, 2007
Wall Street investment bank Merrill Lynch announces three sale deals to ease funding woes
December 28, 2007
Wall Street investment bank Goldman Sachs predicts Citigroup, JPMorgan Chase, and Merrill Lynch may write down another $34 billion in subprime securities
The year 2008
January 4, 2008
Consumer credit defaults intensified, with delinquency rates rising to the highest since 2001, according to the American Banking Association.
January 16, 2008
Rating firm Moody’s predicts SIV bondholders lose 47% of their assets
January 17, 2008
Subprime mortgage losses are heavy, and S&P rating company begins to implement new evaluation methods for bond insurers
Bush administration intends to ease regulation of Freddie Mac and Fannie Mae
US housing starts fell 14.2% in December to an annual rate of 1.006 million units, the lowest in 16 years
January 21, 2008
The UK Treasury gives private companies interested in buying North Rock Bank a detailed proposal by February 4
January 22, 2008
Fed cuts rates by 75 basis points
January 24, 2008
New York insurance regulators seek $15 billion in financial aid for bond insurers
January 30, 2008
Fed cuts rates by 50 basis points
February 1, 2008
US nonfarm payrolls fell by 18,000 in January, the first drop in more than four years
February 9, 2008
The G7 finance ministers and central bank governors meeting stated that the impact of the subprime mortgage crisis has increased
February 12, 2008
America’s Big Six Mortgage Banks Announce ‘Lifeline’ Program to Prevent Foreclosures
Buffett willing to reinsure $80 billion in US municipal bonds
February 14, 2008
Fourth-largest US bond insurer FGIC announces willingness to spin off business
February 18, 2008
The UK decides to nationalize Northern Rock Bank
February 19, 2008
The Fed unveils a proposal for new rules to prevent risky mortgages, the most comprehensive remedy since the subprime mortgage crisis
February 20, 2008
Germany declares state banks in the subprime crisis
February 21, 2008
UK parliament approves nationalization of North Rock Bank
February 28, 2008
Fed Chairman Bernanke claims rate cut even if inflation accelerates
March 5, 2008
US ADP employment fell by more than 20,000 in February, the dollar against the euro hit a record low
March 7, 2008
The Fed announces two new measures to increase liquidity, one is the term tender facility, and the other is the decision to start a series of term repo transactions
March 11, 2008
The Fed and the other four central banks once again announced that they will continue to inject liquidity into the market and ease the pressure on the global money market
March 13, 2008
Regulators including Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke will propose stricter regulations on bank capital
US official recession forecast for first time
March 14, 2008
US investment bank Bear Stearns seeks emergency funding from JPMorgan Chase and the New York Fed, as deepen concerns over the health of the US banking sector
March 17, 2008
The Fed unexpectedly announced that the window discount rate was lowered by 25 basis points to 3.25%
JPMorgan agrees to buy Bear Stearns for around $240 million
March 19, 2008
Fed announces 75bps rate cut, hints further cuts
March 20, 2008
The Bank of England met with senior managers of five investment banks and stated for the first time that it would provide more financial assistance to domestic banks
March 24, 2008
The Federal Housing Finance Commission allows the US Federal Home Loan Banking System to increase its holdings of more than $100 billion in MBS issued by Freddie Mac and Fannie Mae
March 27, 2008
Liquidity in the European money market is again in a hurry, the Bank of England and the Swiss National Bank jointly inject capital
Fed provides $75 billion in Treasuries to primary dealers through term securities lending facility
British Prime Minister Brown and French President Sarkozy meet to discuss how to improve financial market transparency and urge major international financial institutions to reform
March 31, 2008
US Treasury Secretary Paulson to submit a reform bill to Congress to strengthen mixed-business regulation
US President Bush and British Prime Minister Brown agree to strengthen cooperation to deal with financial market turmoil
April 8, 2008
IMF says global subprime mortgage losses of $1 trillion
April 9, 2008
For the first time, the Institute of International Finance, on behalf of global banking giants, has publicly acknowledged responsibility in the credit crisis
April 10, 2008
Goldman Sachs announces layoffs again, UBS predicts Wall Street firms may have to cut up to 35% of staff
US Senate passes housing market rescue package worth more than $4.1 billion
Goldman Sachs CEO Says Credit Crisis May Be Nearly Over
April 11, 2008
Japan’s Mizuho Financial Group estimates Mizuho Securities’ 2007 fiscal year subprime mortgage-related transaction losses to reach 400 billion yen (equivalent to 3.9 billion US dollars)
April 12-13, 2008
The Group of Seven (G7) and International Monetary Fund (IMF) held a two-day meeting, expressing concerns about the current financial market volatility and calling for stronger financial supervision
April 14, 2008
Deutsche Bank plans to sell up to $20 billion in leverage-related debt to private equity firms
April 15, 2008
UK March RICS house price index fell to a 30-year low of -78.5, below expectations for -67.5
JPMorgan analysts pointed out that the global credit crisis is likely to continue to affect the market in the next 10 years
Investment Authority of Singapore intends to participate in UBS’ CHF 15 billion financing plan
Citigroup VP William Rhodes claims the US economy is approaching the center of the storm and maybe in a recession
OECD forecasts global subprime mortgage losses of $350-420 billion
RealtyTrac Inc. reports US home foreclosures rose 57% in March
UK banks urge the government to intervene in markets to prevent smaller financial institutions from failing and secure new sources of lending
April 16, 2008
Brown visits the US to seek international solutions for the credit crunch and other issues
US housing starts plunged 11.9% in March to the lowest level in 17 years
Fed Beige Book points to lending standards across regions, loan demand falls
JPMorgan reports better-than-expected quarterly report, says subprime will end, plans to raise $6 billion in capital
April 17, 2008
Merrill Lynch posted a net loss of $1.96 billion in the first quarter, a bigger-than-expected loss and its third straight quarterly loss. The company’s first-quarter write-downs totaled more than $6.5 billion and will cut another 3,000 jobs, anticipating ” tougher” months ahead.
April 18, 2008
Citigroup announced a first-quarter net loss of $5.11 billion, or $1.02 per share, after writing down more than $13 billion in losses
Tokyo-Mitsubishi UFJ Financial Group expects losses related to subprime loans of 95 billion yen ($921 million) in the year ended March 31.
LIBOR jumped 20 basis points last week, signaling the Fed will do more than cut rates by 25 basis points this month
April 20, 2008
Merrill CEO Sean claims to disapprove of the view that the worst of the credit crunch is over
April 21, 2008
RBS is planning to raise £12bn ($24bn) in response to mounting pressure on the banks’ big lenders’ balance sheets, which have been hit hard by the credit crunch
The Bank of England announced that it will use 50 billion pounds of government bonds to swap mortgage assets held by commercial banks to help the banking sector recover
Bank of America is planning to sell its stake in China Construction Bank to raise funds to strengthen its balance sheet in the face of the credit crunch, the Financial Times reported.
ECB President Trichet says banks remain reluctant to lend, so market correction is not over yet
April 22, 2008
Fed Governor Krozner says lending revisions may address some of the mortgage market’s problems
Former Japanese Cabinet Office senior official Hiroshi Watanabe pointed out that Asian governments should set up foreign exchange reserves of 100 billion US dollars by 2010 to prevent a repeat of the same mistakes as the regional financial crisis 10 years ago
Yale University economist Robert Shiller warns that US housing prices may be more severe than the “Great Depression” period, and the government should take rescue action to prevent millions of people from losing their homes
US existing home sales fell 2.0% in March to 4.93 million units
Swiss National Bank puts $6 billion into the market
ECB lends $15 billion to banks in 28-day dollar funding
April 23, 2008
Bernard Bowmer, general manager of the Economic Outlook Group, pointed out that the US economy is in serious trouble, and a V-shaped recovery is unlikely
The number of UK home loan approvals fell to a record low of 35,417 in March from 43,147 in February. The outlook for the UK housing market is not optimistic
German Bank Duesseldorfer to be taken over by the German Banking Association
US House Financial Services Committee Approves Nationwide Local Government Acquisition of Foreclosed Housing
April 24, 2008
3-month euro Libor rose again on Thursday to a 4-month high, showing continued tightening in money markets
Credit Suisse’s first-quarter asset impairment of 5.3 billion Swiss francs turned its financial position into a loss, with a net loss of 2.15 billion Swiss francs
Bank of Canada injects C$495 million into the market through a special buy and sell-back agreement
The New York Fed announced weak demand for Treasury auctions under the expanded Term Securities Lending Facility, with a total of $59.46 billion in applications, $75 billion below the bid amount
The US Treasury Department said the special tax rebate will begin next Monday, five days earlier than the Treasury Department had previously expected.
US commercial banks have increased their borrowing at the Fed’s discount window this week, while investment banks have reduced their use of the facility, and the focus of the credit crunch has shifted from brokerages to depository institutions.
UK’s Northern Rock may decide to cut 2,000 jobs after announcing the nationalization
April 25, 2008
The US dollar index rebounded to a 1-month high on expectations that the Fed’s rate-cut cycle will end
US new home sales fell further in March to the lowest level since 1991
US consumer confidence hits the lowest level since March 1982 in April
April 28, 2008
Prominent investor Warren Buffett claims that the US economy is in a recession, and it will be more severe than most people expect.
The US Census Bureau released a report showing that in the first quarter of 2008, the annual rate of vacancies in the United States hit a record high of 2.9%.
April 29, 2008
The number of mortgage approvals for home purchases in the UK in March fell to the lowest level since the data began.
Deutsche Bank announces first net loss in five years
April 30, 2008
Fed cuts rates by 25 basis points, removes ‘Growth remains at risk’ in the post-meeting statement
The US GDP grew by 0.6% in the first quarter, but Credit Suisse believes that it mainly depends on the increase in inventories, which is not conducive to future development
British HBOS issued an additional 4 billion pounds of equity to increase the scale of capital and resist the deteriorating market environment
May 1, 2008
Bank of England points out in financial stability report that subprime losses may only be $170 billion; major banks agree to keep minimum assets in a special liquidity plan
FDIC thinks markets are about to get past the credit crunch
Fed Chairman Bernanke sees US student loan market problems beyond liquidity
US House of Representatives approves $300 billion housing aid package
US Treasury Secretary Paulson sees credit crisis halfway through
May 2, 2008
US nonfarm payrolls fell by just 20,000 in April, and the unemployment rate fell to 5.0%, a better-than-expected result
IMF chief Kahn worries that the good news of the US jobs report in April is short-lived, and believes that the economy will not recover this year
Fed expands TAF from $50 billion to $75 billion while expanding currency swap lines with ECB and SNB
White House says US economy showing no signs of recession so far
British Halifax house prices fell for three consecutive months in April, down 1.3% month-on-month and 3.7% year-on-year
May 4, 2008
The US FHFB pointed out that cutting interest rates and taxes alone cannot solve the subprime mortgage problem, and the US government must take active action
May 5, 2008
Rato, former chairman of the IMF, pointed out that the most difficult period of the credit crisis has passed, and the recent rebound of the dollar is normal
The US ISM non-manufacturing index was 52.0 in April, compared with a median forecast of 49.1, also the highest level since December last year
Fed injects $11 billion in temporary reserves through overnight repo operations
Berkshire Hathaway president Warren Buffett sees no need for further rate cuts by the Fed
US banks continue to tighten standards and conditions for lending to businesses and consumers amid concerns about an increasingly bleak economic outlook, a Fed survey shows
Former Federal Reserve Chairman Alan Greenspan says it’s too early to say the credit crunch sparked by the subprime mortgage market collapse is over
Fed Chairman Bernanke expects the US housing market to deteriorate further and hurt the overall economy
May 6, 2008
Treasury presses lenders to speed up mortgage resolution
Wall Street’s Big Three – Morgan Stanley, JPMorgan, and Lehman Brothers all plan to downsize staff shortly
Fed provides 28-day TAF totaling $75 billion
Fannie Mae announced a loss of $2.19 billion, or $2.57 per share, in the first quarter of this year, with losses expected to worsen next year
US House Speaker Nancy Pelosi calls for the second stimulus package
UBS, Europe’s largest lender by assets, confirmed it posted a loss of 11.54 billion Swiss francs ($10.99 billion) in the first quarter, dragged down by huge write-downs. The bank also announced that it will cut 5,500 jobs by the middle of next year.
May 7, 2008
Former US Treasury Secretary Snow pointed out that the US is nearing the end of the rate-cut cycle, but the economy will continue to slow
US Treasury Secretary Paulson said that the US financial market is gradually recovering from the credit crunch, and the worst of the credit crisis may be over, but it will take months for market problems to be fully resolved
Fed’s Horne hints rates are close to the target
Fed official Krozner says Fed takes housing market very seriously
US March NAR existing home contracted sales index fell 1.0% to 83.0, unchanged from expectations
The US House of Representatives will debate a Democrat’s housing rescue plan that would support the government’s eventual purchase of up to $15 billion in foreclosed homes and provide help to about 500,000 homeowners facing foreclosure, but the White House threatens to veto the plan
May 8, 2008
US Treasury Secretary Paulson expects the US economy to accelerate later this year, and tax refund checks can help it out of the woods immediately
Former Federal Reserve Chairman Alan Greenspan says the worst of the credit crisis is over, but the fall in house prices still has a long way to go
Two major European central banks announced to maintain interest rates to fight inflation
The number of Americans filing for unemployment benefits fell by 18,000 to 365,000 for the week ended May 3. better than expected results
US wholesale inventories unexpectedly fell 0.1% m/m in March
The US House of Representatives passes a bill to create a $300 billion mortgage insurance fund and provide homeowners with billions more
September 15, 2008
The fourth-largest investment bank in the United States, Lehman Brothers, fell into a serious financial crisis and declared bankruptcy protection, and a more serious financial crisis is coming.
The European Central Bank announced on the same day that it would inject a total of 30 billion euros into the commercial banking system, with a one-day term and an average interest rate of 4.39%, higher than the ECB’s dominant interest rate of 4.25%. It was the first such intervention by the ECB since the global financial market crisis last summer.
September 20, 2008
The Bush administration formally submits a bill to the US Congress to rescue the financial system, and the Treasury Department will be authorized to purchase up to $700 billion in distressed mortgage loan assets.
The US government hopes that all problems will be solved within 2 years, and it is hoped that this problem will be solved before it affects the real economy, to avoid a great depression like the 1930s.
September 22, 2008
German Finance Minister Steinbrück said after a telephone consultation with G7 finance ministers and central bank governors that other G7 members refused to participate in the US financial rescue plan.
I think China is also in danger of a financial crisis. Once Chinese banks raise the repayment interest rate, a considerable number of mortgage holders will not be able to repay the loan, resulting in bad debts of the bank. At that time, won’t the real estate industry also take the lead in the reduction of Vanke? So everyone is still vigilant, housing prices will inevitably fall, no matter which city, including Beijing.
On September 25, 2008, the largest savings and loan bank in the United States, the Seattle-based Washington Mutual Inc., was seized by the Federal Deposit Insurance Corporation (FDIC) on Thursday (25th) local time. Take over and become the largest bank failure in US history.
On September 29, 2008, the US House of Representatives rejected the US$700 billion rescue plan. US stocks fell sharply. The Dow plummeted 777 points, the largest point drop in history. The single-day drop was as high as 7%. biggest drop. Market confidence is weak, the Dow continues to bottom out, and the 10,000-point mark is in jeopardy.
On the 30th, the US House of Representatives rejected the $700 billion rescue plan, and the Senate tried to salvage it, and the case is scheduled to be voted on Wednesday.
On October 2, 2008, the US Senate voted 74 to 25 to approve the new version of the $700 billion rescue plan proposed by the Bush administration. The tax cut plan and provisions to raise the current limit on bank deposit insurance to $250,000 from $100,000 are designed to soothe a nervous American public and support economic growth. It is expected to help global stock markets and will put pressure on the House of Representatives, some of whom are considering moving to support the bill.
On October 8, the major central banks acted at the same time, made a clear response to the turmoil in the financial market, and successively announced interest rate cuts.
The Federal Reserve announced a 50 basis point rate cut to 1.5%, and the European Central Bank, the Bank of England, the Bank of Canada, the Riksbank, and the Swiss National Bank also cut rates by 50 basis points.
On the afternoon of October 7, local time in Australia, the Federal Reserve Bank of Australia (RBA) lowered the bank’s benchmark interest rate by 1% to 6.00%
The Bank of Israel also announced that it cut interest rates by 50 basis points to 3.75% due to a sharp decline in global financial markets, with the new rates set to take effect on October 12.
October 9
Following in the footsteps of the United States, relevant authorities in South Korea, Japan, Hong Kong, Taiwan, and Indonesia have taken measures to ease monetary policy and inject capital into banks.
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