Monday, November 17, 2008

China's Stimulus Plan Will Change the World

Brazil's President Lula told his country in September, "People ask me about the [financial] crisis, and I answer, go ask Bush. It is his crisis, not mine."

Fifty days later, British Treasury Secretary Stephen Timms told a conference of G-20 nations gathered in Sao Paulo, Brazil: "We are in extraordinary times, the global economy is facing shocks which are wholly without precedent and we need a new approach. … It is a global crisis. It therefore requires an international response."

In other words, what goes around, comes around. Global schadenfreude toward a stupid and greedy United States and its subprime mortgage meltdown has rapidly become global concern about how to rescue the world from an all-encompassing financial disaster. Here's just a smattering of companies large and small that recently announced lowered outlooks for the year: Under Armour (NYSE: UA), News Corp. (NYSE: NWS), Starbucks (Nasdaq: SBUX), Vodafone (NYSE: VOD), Electronic Arts (Nasdaq: ERTS), ADP (NYSE: ADP), and Hormel (NYSE: HRL). (Yes, in these tough times, even the outlook for Spam is grim.)

And if that were not enough, the International Monetary Fund (IMF) recently lowered its outlook for the entire global economy.

One country's plan to step up
Against that backdrop, China announced a 4-trillion-yuan ($586 billion) stimulus package for its domestic economy this past Sunday. It plans to fund extensive infrastructure construction, aid poor farmers, and cut export taxes.

While China's plan has clear beneficiaries, and should help keep more laborers in their jobs and prop up domestic consumer spending, the most important (and underreported) aspect of the plan is how it will fundamentally change the economic relationship between the U.S. and China.

Here's how it was
One of the big debates over the past half-decade was whether China had reached a point in its economic development at which its internal economic gravity would allow it to "decouple" from the global economy. If so, it could continue along its fantastic growth trajectory, even as growth in the U.S. or Europe ceased or reversed.

That may sound like gobbledygook, but it's important. The U.S. has a $20 billion monthly trade deficit with China. It's funded by China's willingness to hold U.S. treasuries in its Central Bank (essentially, we're borrowing the money). China manages the arrangement by pegging its currency (the yuan) to the dollar at an artificially low rate, and by not worrying so much about certain niceties like environmental regulation and labor protection.

It's a mutually beneficial arrangement -- a weak yuan supports Chinese exporters, helping the country industrialize and quickly integrate rural migrants into its urban workforce, with the salutary effect of keeping inflation and potential political unrest low. For its part, the U.S. has gotten dirt cheap financing, by virtue of China parking more than a trillion dollars in U.S. government securities. That has supported the dollar and allowed the Federal Reserve to fuel consumer spending by keeping interest rates low.

China's stimulus package heralds the unwinding of this relationship.

Here's how it will be
This is why the decoupling argument matters. Many analysts have pointed to the thousands of factories that have shut down in China in these past few months as evidence that a slowdown in American spending will cause a depression in China -- potentially even leading to regime change. But in fact, US trade imbalance with China is artificially preserved by the aforementioned currency peg, and by the decision of China's state-run banks to make uneconomic loans to businesses it deemed worth propping up.

China has paid heavily for this relationship. Rather than invest its surplus cash in its own country, the Chinese poured money back into the U.S. to further spur our debt-fueled consumption. (Put less artfully, some poor Chinese guy in Shaanxi province was essentially helping you pay your mortgage.)

The announced stimulus package reverses that. Hundreds of billions of dollars that would have gone to propping up the greenback are now being reinvested in China, helping it to transition from its reliance on exports to a self-sustaining economy. So while China isn't yet decoupled from its export markets, this new spending plan will help it along that path.

What you need to do to survive
China's huge currency reserves are about to be put to use, and while there will be some real and perhaps severe bumps along the way, the China that comes out on the other side will be a heck of a lot stronger, more independent, and more decoupled than the one we've seen up to now.

Chinese premier Wen Jiabao called his country's stimulus the "biggest contribution to the world." We don't know whether that's true, but we do know that China's ability to reach deep into its huge coffers to finance further growth gives it a significant advantage over the rest of the world's struggling economies.

Friday, October 10, 2008

Timeline: Global credit crunch

Timeline: Global credit crunch

A year ago, few people had heard of the term credit crunch, but the phrase has now entered dictionaries.

Defined as "a severe shortage of money or credit", the start of the phenomenon has been pinpointed as 9 August 2007 when bad news from French bank BNP Paribas triggered sharp rise in the cost of credit, and made the financial world realise how serious the situation was.

The problems, however, started much earlier.

GROWING SUB-PRIME PROBLEMS

After a two year period between 2004 and 2006 when US interest rates rose from 1% to 5.35%, the US housing market begins to suffer, with prices falling and a rise in homeowners defaulting on their mortgages.

Default rates on sub-prime loans - high risk loans to clients with poor or no credit histories - rise to record levels.

APRIL-AUGUST 2007: SUB-PRIME CONTAGION

April

 


 

The credit losses associated with sub-prime have come to light and they are fairly significant...Some estimates are in the order of between $50bn and $100bn of losses


Ben Bernanke, Chairman US Federal Reserve, speaking on 20 July 2007

New Century Financial, which specialises in sub-prime mortgages, files for Chapter 11 bankruptcy protection and cuts half of its workforce.

As it sold on many of its debts to other banks, the collapse in the sub-prime market begins to have an impact at banks around the world.

July

Investment bank Bear Stearns tells investors they will get little, if any, of the money invested in two of its hedge funds after rival banks refuse to help it bail them out.

Federal Reserve chairman Ben Bernanke follows the news with a warning that the US sub-prime crisis could cost up to $100bn (£50bn).


 


 


 

AUGUST 2007: SCALE OF THE CREDIT CRISIS EMERGES

9 August 2007

 


 

BNP's statement is scary, to put it mildly


BBC Business Editor, Robert Peston


 

Investment bank BNP Paribas tells investors they will not be able to take money out of two of its funds because it cannot value the assets in them, owing to a "complete evaporation of liquidity" in the market.

It is the clearest sign yet that banks are refusing to do business with each other.

The European Central Bank pumps 95bn euros (£63bn) into the banking market to try to improve liquidity. It adds a further 108.7bn euros over the next few days.

The US Federal Reserve, the Bank of Canada and the Bank of Japan also begin to intervene.

17 August

The Fed cuts the rate at which it lends to banks by half of a percentage point to 5.75%, warning the credit crunch could be a risk to economic growth.

21 August

UK sub-prime lenders begin to withdraw mortgages or put up the cost of borrowing for UK homeowners with poor credit histories.

28 August

German regional bank Sachsen Landesbank faces collapse after investing in the sub-prime market; it is sold to larger rival Landesbank Baden-Wuerttemberg.


 


 


 

SEPTEMBER 2007: A RUN ON A BANK

3 September

German corporate lender IKB announces a $1bn loss on investments linked to the US sub-prime market.

4 September

The rate at which banks lend to each other rises to its highest level since December 1998.

The so-called Libor rate is 6.7975%, way above the Bank of England's 5.75% base rate; banks either worry whether other banks will survive, or urgently need the money themselves.

13 September

 


 

The fact that it has had to go cap in hand to the Bank is the most tangible sign that the crisis in financial markets is spilling over into businesses that touch most of our lives


 

The BBC reveals Northern Rock has asked for and been granted emergency financial support from the Bank of England, in the latter's role as lender of last resort.

Northern Rock relied heavily on the markets, rather than savers' deposits, to fund its mortgage lending. The onset of the credit crunch has dried up its funding.

A day later depositors withdraw £1bn in what is the biggest run on a British bank for more than a century. They continue to take out their money until the government steps in to guarantee their savings.

18 September

The US Federal Reserve cuts its main interest rate by half a percentage point to 4.75%.

19 September

After previously refusing to inject any funding into the markets, the Bank of England announces that it will auction £10bn.


 


 

OCTOBER 2007: MAJOR LOSSES BEGIN TO EMERGE

1 October

Swiss bank UBS is the world's first top-flight bank to announce losses - $3.4bn - from sub-prime related investments.

The chairman and chief executive of the bank step down. Later, banking giant Citigroup unveils a sub-prime related loss of $3.1bn. A fortnight on Citigroup is forced to write down a further $5.9bn. Within six months, its stated losses amount to $40bn.

30 October

Merrill Lynch's chief resigns after the investment bank unveils a $7.9bn exposure to bad debt.

NOVEMBER 2007: UK HOUSING MARKET 'TURNS DOWN'

29 November

The Bank of England reveals the number of mortgage approvals has fallen to a near three-year low.

30 November

The Council for Mortgage Lenders (CML) issues the starkest warning yet of the impact of the credit crunch on the mortgage market, saying that without more funding available on financial markets, mortgage lenders will not be able to offer as many mortgages.


 

DECEMBER 2007: HELP IS AT HAND

6 December

US President George W Bush outlines plans to help more than a million homeowners facing foreclosure.

The Bank of England cuts interest rates by a quarter of one percentage point to 5.5%.

13 December

The US Federal Reserve co-ordinates an unprecedented action by five leading central banks around the world to offer billions of dollars in loans to banks.

The Bank of England calls it an attempt to "forestall any prospective sharp tightening of credit conditions". The move succeeds in temporarily lowering the rate at which banks lend to each other.

17 December

The central banks continue to make more funding available.

There is a $20bn auction from the US Federal Reserve and, the following day, $500bn from the European Central Bank to help commercial banks over the Christmas period.

NEXT UP: THE BOND INSURERS

19 December

Ratings agency Standard and Poor's downgrades its investment rating of a number of so-called monoline insurers, which specialise in insuring bonds. They guarantee to repay the loans if the issuer goes bust.

There is concern that insurers will not be able to pay out, forcing banks to announce another big round of losses.

9 January 2008

The World Bank predicts that global economic growth with slow in 2008, as the credit crunch hits the richest nations.

18 January

A rush to withdraw money from its commercial property funds forces Scottish Equitable to introduce delays of up to 12 months for investors wanting to take their money out.

It blames the rush of withdrawals on concerns about the US sub-prime mortgage collapse, recession worries and interest rates.

21 January

Global stock markets, including London's FTSE 100 index, suffer their biggest falls since 11 September 2001.

22 January

The US Fed cuts rates by three quarters of a percentage point to 3.5% - its biggest cut in 25 years - to try and prevent the economy from slumping into recession.

It is the first emergency cut in rates since 2001. Stock markets around the world recover the previous day's heavy losses.

31 January

A major bond insurer MBIA, announces a loss of $2.3bn - its biggest to date for a three-month period -blaming its exposure to the US sub-prime mortgage crisis.


 


 

FEBRUARY - MARCH 2008: BIG NAME CASUALTIES

7 February

US Federal Reserve boss Ben Bernanke adds his voice to concerns about monoline insurers, saying he is closely monitoring developments "given the adverse effects that problems of financial guarantors can have on financial markets and the economy".

The Bank of England cuts interest rates by a quarter of one percent to 5.25%.

8 February

 


 

Some investors forgot the golden rule of financing: 'Don't buy things that you don't understand'


FSA chief executive Hector Sants, speaking on 27 February 

In the UK, the latest CML figures show the number of homes repossessed in the UK rose to 27,100 in 2007, its highest level since 1999.

10 February

Leaders from the G7 group of industrialised nations say worldwide losses stemming from the collapse of the US sub-prime mortgage market could reach $400bn.

17 February

After considering a number of private sector rescue proposals, including from Richard Branson's Virgin Group, the government announces that struggling Northern Rock is to be nationalised for a temporary period.

7 March

In its biggest intervention yet, the Federal Reserve makes $200bn of funds available to banks and other institutions to try to improve liquidity in the markets.

17 March

Wall Street's fifth-largest bank, Bear Stearns, is acquired by larger rival JP Morgan Chase for $240m in a deal backed by $30bn of central bank loans.

A year earlier, Bear Stearns had been worth £18bn.

28 March

Nationwide predicts UK house prices will fall by the end of the year, revising its previous forecast of no change in prices.

APRIL 2008: THE 100% MORTGAGE IS CONSIGNED TO HISTORY

2 April

Moneyfacts, which monitors financial products, says 20% of mortgage products have been withdrawn from the UK market in the previous seven days.

 


 

I have a deep sense of shock at how deeply our successful industry has already been hit by these unprecedented funding market conditions


Steven Crawshaw, chairman of the Council for Mortgage Lenders, speaking on 11 April 2008 

Five days later the 100% mortgage disappears when Abbey withdraws the last home loan available without a deposit.

8 April

The International Monetary Fund (IMF), which oversees the global economy, warns that potential losses from the credit crunch could reach $1 trillion and may be even higher.

It says the effects are spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt.

10 April

The Bank of England cuts interest rates by a quarter of one percent to 5%.

11 April

A warning is issued by the CML that the amount of funding available for mortgages in the UK could be cut in half this year.

It calls on the Bank of England to kick-start the money markets and ease the effects of the credit crunch.

 


 

The effects of the credit crunch are likely to be broader, deeper and more protracted than previously expected

IMF global stability report, 8 April 2008

15 April

Confidence in the UK housing market falls to its lowest point in 30 years in March, according to the Royal Institution of Chartered Surveyors, because of the "unique liquidity blight".

But it does add that the situation is good news for buyers with large deposits who can buy property that was previously out of reach.

21 April

The Bank of England announces details of an ambitious £50bn plan designed to help credit-squeezed banks by allowing them to swap potentially risky mortgage debts for secure government bonds.

APRIL - JUNE 2008: BANKS PASS ROUND THE HAT

22 April

Royal Bank of Scotland announces a plan to raise money from its shareholders with a £12bn rights issue - the biggest in UK corporate history.

The firm also announces a write-down of £5.9bn on the value of its investments between April and June - the largest write-off yet for a British bank.

25 April

Persimmon becomes the first UK house builder to announce major cutbacks, citing the lack of affordable mortgages and a fall in consumer confidence.

It adds sales have fallen by a quarter since the beginning of the year.


 

 


 

Because of the uncertainties in the global economy and the UK lending environment, it is difficult to predict when the [housing] market will improve



 

29 April

The CML says number of new mortgages approved in March slipped 44% to 64, the lowest monthly number since records began in 1999.

30 April

The first annual fall in house prices for 12 years is recorded by Nationwide.

Prices were 1% lower in April compared to a year earlier after a "steep decline" in home buying over the previous six months.

Later in the week, figures from the UK's biggest lender Halifax, show a 0.9% annual fall for April.

2 May

More than 850 companies went into administration between January and March, government figures show, a rise of 54% on the previous year. Retail and construction firms are hardest hit.

22 May

Swiss bank UBS, one of the worst affected by the credit crunch, launches a $15.5bn rights issue to cover some of the $37bn it lost on assets linked to US mortgage debt.

19 June

There are significant developments in two major credit crunch-related investigations in the US, which it is hoped will restore confidence in the credit markets.

The FBI arrests 406 people, including brokers and housing developers, as part of a crackdown on alleged mortgage frauds worth $1bn.

Separately, two former Bear Stearns workers face criminal charges related to the collapse of two hedge funds linked to sub-prime mortgages.

It is alleged they knew of the funds' problems but did not disclose them to investors, who lost a total of $1.4bn.

25 June

Barclays announces plans to raise £4.5bn in a share issue to bolster its balance sheet.

The Qatar Investment Authority, the state-owned investment arm of the Gulf state, will invest £1.7bn in the British bank, giving it a 7.7% share in the business. A number of other foreign investors increase their existing holdings.

JULY 2008: MAJOR LENDERS ON THE EDGE

8 July

The gloomy findings of a survey of its members prompt the British Chambers of Commerce (BCC) to suggest that the UK is facing a serious risk of recession within months.

Meanwhile, the FTSE 100 stock index briefly dips into a "bear market", in which the market suffers a 20% fall from its recent highs.

 

The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected


British Chambers of Commerce, 18 July 2008

 

13 July

US mortgage lender IndyMac collapses - the second-biggest bank in US history to fail.

14 July

Financial authorities step in to assist America's two largest lenders, Fannie Mae and Freddie Mac. As owners or guarantors of $5 trillion worth of home loans, they are crucial to the US housing market and authorities agree they could not be allowed to fail.

The previous week, there had been a panic amongst investors that they might collapse, causing their share prices to plummet.

21 July

Just 8% of HBOS investors agree to take up the new shares offered in its £4bn rights issue, because they are priced higher than existing shares are trading on the stock market.

But HBOS still gets the £4bn it wanted, as the unsold new shares are bought by the issue's underwriters.

31 July

UK house prices show their biggest annual fall since the Nationwide began its housing survey in 1991, a decline of 8.1%.

The average home now costs £169,316. That is nearly £15,000 cheaper than in the same month last year.

Meanwhile, HBOS reveals that profits for the first half of the year sank 72% to £848m, while bad debts rose 36% to £1.31bn as customers failed to repay loans.


 

AUGUST - SEPTEMBER 2008: GIANTS SUFFER

4 August

Global banking giant HSBC warned that conditions in financial markets are at their toughest "for several decades" after suffering a 28% fall in half-year profits.

Of Europe's top banks, HSBC has among the heaviest exposure to the troubled US housing and credit markets.

22 August

The bad news continues with revised figures from the ONS revealing that the UK economy is a standstill.

28 August

Nationwide reveals that UK house prices have fallen by 10.5% in a year.

A day later Bradford and Bingley posts losses of £26.7m for the first half of 2008, blaming surging mortgage arrears for a rise in impairment.

Looking ahead, it warned it expected arrears to remain at high levels for the rest of the year.

30 August

Chancellor Alistair Darling warns that the economy is facing its worst crisis for 60 years in an interview with the Guardian newspaper, saying the current downturn would be more "profound and long-lasting" than most had feared.

1 September

Official figures from the Bank of England show a slump in approved mortgages for July.

Meanwhile, while the pound falls to record lows of 81.21 pence against the euro and two-year lows of $1.80.

2 September

In an effort to kick-start the UK housing market the Treasury announces a one year rise in stamp duty exemption, from £125,000 to £175,000.

But there is more bad news, as the Organisation for Economic Cooperation and Development forecasts that the UK will be in a full blown recession by the end of the next two quarters. A day later the European central bank cuts growth forecast 2009 to 1.2% from 1.5%.

4 September

The Bank of England leaves rates on hold at 5% while the latest figures from the Halifax show that house prices in England and Wales continue to fall.

5 September

A raft of negative news from around the world sees the FTSE notch up its steepest weekly decline since July 2002.

The US labour market figures - which showed the unemployment rate rising to 6.1% - were a further jolt to investors who have had to swallow a slew of poor economic data in recent days.

6 September

The Halifax warns that the impact of the credit crunch will be felt well into 2010. Chief executive Andy Hornby explains that British banks will continue to suffer major problems in offering loans until they can raise significant sums on wholesale markets, something that will not be possible until US house prices recover.

7 September

Mortgage lenders Fannie Mae and Freddie Mac - which account for nearly half of the outstanding mortgages in the US - are rescued by the US government in one of the largest bailouts in US history.

Treasury Secretary Henry Paulson says the two firms' debt levels posed a "systemic risk" to financial stability and that, without action, the situation would get worse.

At the same time, in the UK, the Nationwide announces it will merge with two smaller rivals, the Derbyshire and Cheshire Building Societies.

9 September

More bad news emerges for the UK economy as the ONS reveals manufacturing output fell by 0.2% between June and July, raising a real fear of recession.

Meanwhile, the British Retail Consortium reports UK retail sales values fell by 1.0% on a like-for-like basis from August 2007.

On the housing front, there were more negative headlines with the Royal Institute of Chartered Surveyors published figures showing house sales were at their lowest level for 30 years, while the CML reported that the number of first-time buyers has hit its lowest level since its survey began in January 2002.

10 September

Wall Street bank Lehman Brothers posts a loss of $3.9bn for the three months to August.

The announcement comes against a background of further dire economic warnings from the European Commission, which warned that the UK, Germany and Spain will go into recession by the end of the year.

15 September

After days of searching frantically for a buyer, Lehman Brothers files for Chapter 11 bankruptcy protection, becoming the first major bank to collapse since the start of the credit crisis.

Former Federal Reserve chief Alan Greenspan dubs failure as "probably a once in a century type of event" and warns that other major firms will also go bust.

Meanwhile fellow US bank Merrill Lynch, also stung by the credit crunch, agreed to be taken over by Bank of America for $50bn, the latest twist in a dramatic turn of events on Wall Street.

16 September

The US Federal Reserve announces an $85bn rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy. AIG gets the loan in return for an 80% public stake in the firm.

17 September

Britain's biggest mortgage lender HBOS is taken over by Lloyds TSB in a £12bn deal creating a banking giant holding close to one-third of the UK's savings and mortgage market. The deal follows a run on HBOS shares.

25 September

In the largest bank failure yet in the United States, Washington Mutual, the giant mortgage lender which had assets valued at $307bn is closed down by regulators and sold to its JPMorgan Chase.

Analysts say much of its problems have been caused by the group's 2006 purchase of mortgage lender Golden West for $25bn at the height of the then US housing boom.

28 September

The credit crunch hits Europe's banking sector as the European banking and insurance giant Fortis is partly nationalised to ensure its survival. It is seen as too big a European bank to be allowed to go under.

Authorities in the Netherlands, Belgium and Luxembourg agree to pour in 11.2bn euros ($16.1bn; £8.9bn). Fortis' share price has fallen sharply amid concerns about its debts.

In the US lawmakers announce they have reached a bipartisan agreement on a rescue plan for the American financial system.

The package, to be approved by Congress, allows the Treasury to spend up to $700bn buying bad debts from ailing banks.

It will be the biggest intervention in the markets since the Great Depression of the 1930s.

29 September

In Britain the mortgage lender Bradford & Bingley is nationalised. The British government takes control of the bank's £50bn mortgages and loans, while its savings operations and branches are sold to Spain's Santander.

The Icelandic government takes control of the country's third-largest bank Glitnir after the company had faced short-term funding problems.

Wachovia, the fourth-largest US bank, is bought by its larger rival Citigroup in a rescue deal backed by the US authorities. Under the deal, Citigroup will absorb up to $42bn of Wachovia losses.

The US House of Representatives rejects a $700bn rescue plan for the US financial system - sending shockwaves around the world.

It opens up new uncertainties about how banks will deal with their exposure to toxic loans and how credit markets can begin to operate more normally. Wall Street shares plunge, with the Dow Jones index slumping 7% or 770 points, a record one-day point fall.

30 September

Dexia becomes the latest European bank to be bailed out as the deepening credit crisis continues to shake the banking sector.

After all-night talks the Belgian, French and Luxembourg governments said they would put in 6.4bn euros ($9bn; £5bn) to keep it afloat.

Separately, the Irish government says it will guarantee all deposits in the country's main banks for two years.

In the UK, Prime Minister Gordon Brown says the government is planning to raise the limit on guaranteed bank deposits from £35,000 to £50,000.

1 October

Stock markets stabilise ahead of a vote in the Senate, which eventually approves an amended $700bn financial rescue bill.

Market confidence that Lloyds TSB's takeover of HBOS will not be derailed by stock market volatility sees HBOS shares rise 20%.

A report says that French Finance Finister Christine Lagarde calls for an emergency EU bail-out fund for banks threatened with failure.

The EU says it is looking at whether Ireland's full guarantee of saving deposits is anti-competitive.

3 October

The house of representatives passes a revised bailout plan two days after the Senate. Wells fargo says it has agreed to buy Wachovia for about $16 billion, thwarting a planned Citigroup deal. The two are still locked in an intense battle

5 October

European leaders commit to ensure the soundness and stability of banking and financial systems. Germany struggles to rescue lender Hypo Real Estate

6 October

Dow sinks below 10, 000 for the first time in four years on fears of global recession

7 October

Iceland is forced to prop up its currency, take over Landsbanki, its second – biggest bank,. And ask Russia for a loan of 4 billion Euros to avoid "national bankruptcy"

8 October

Indian shares slide 8% to lowest since August 2006. Central banks around the world cut interest rates in a joint response to the crisis. The government is to put up to 250bn pounds into the banking system in an effort to keep banks lending.

It will also offer a guarantee to banks issuing medium term debt, which could mean backing a further 250bn pounds of bank borrowings. But it is unlikely to demand dividend cuts and the end of big bonuses at the banks in return. The plan effectively part- nationalized Brittan's biggest banks, including Lloyds TSB, Royal Bank of Scotland and Barclays.

The current financial crisis has thrown terminology from the business pages onto the front page of newspapers, with jargon now abounding everywhere from the watercooler to the back of a taxi.


 

Here is a guide to many of the business terms currently cropping up regularly, as well as some of the more exotic words coined to describe some of the social effects of the credit crunch.

A-C

Administration

A rescue mechanism for UK companies in severe trouble. It allows them to continue as a going concern, under supervision, effectively to try to trade out of difficulty.

A firm in administration cannot be wound up without permission from a court.

Bear market In a bear market, prices are falling and investors, anticipating losses, tend to sell. This can create a self-sustaining downward spiral.

Bond

A debt security - or more simply an IOU. The bond states when a loan must be repaid and what interest the borrower (issuer) must pay to the holder. Banks and investors buy and trade bonds.

Bull market

A bull market is one in which prices are generally rising and investor confidence is high.

Chapter 11

The term for bankruptcy protection in the US. It postpones a company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business, for example.

Commodities

Commodities are products that, in their basic form, are all the same so it makes little difference from whom you buy them.

That means that they have a market price. You would be unlikely to pay more for iron ore from a particular mine, for example.

Credit crunch

The situation created when banks hugely reduced their lending to each other because they were uncertain about how much money they had.

This in turn resulted in more expensive loans and mortgages for ordinary people.

Credit default swap

A swap designed to transfer credit risk. The buyer of the swap makes periodic payments to the seller in return for protection in the event of a default.

A bank which owns a lot of mortgage debt could swap it, but would have to make a pay-out if those mortgages were not repaid.

D-F

Derivatives

Derivatives are a way of investing in a particular product or security without having to own it. The value can depend on anything from the price of coffee to interest rates or what the weather is like.

Derivatives can be used as insurance to limit the risk of a particular investment.

Credit derivatives are based on the risk of borrowers defaulting on their loans, such as mortgages.

Equity

In a business, equity is how much all of the shares put together are worth.

In a house, your equity is the amount your house is worth minus the amount of mortgage debt that is outstanding on it.

Fakeaway

A home-made, belt-tightening version of a takeaway - think, a curry made with a jar of sauce, bag of rice and a packet of poppadoms from the supermarket.

Futures

A futures contract is an agreement to buy or sell a commodity at a predetermined date and price. It could be used to hedge or to speculate on the price of the commodity

H-K

Hedge fund

A private investment fund with a large, unregulated pool of capital and very experienced investors.

Hedge funds use a range of sophisticated strategies to maximise returns - including hedging, leveraging and derivatives trading.

Hedging

Making an investment to reduce the risk of price fluctuations to the value of an asset.

For example, if you owned a stock and then sold a futures contract agreeing to sell your stock on a particular date at a set price. A fall in price would not harm you - but nor would you benefit from any rise.

Hypermiling

Techniques used by drivers to get more miles to the gallon, such as coasting in neutral and keeping tyre pressure high.

Investment bank

Investment banks provide financial services for governments, companies or extremely rich individuals. They differ from commercial banks where you have your savings or your mortgage.

L-P

Leveraging

Leveraging, or gearing, means using debt to supplement investment.

The more you borrow on top of the funds (or equity) you already have, the more highly leveraged you are. Leveraging can maximise both gains and losses.

Deleveraging means reducing the amount you are borrowing.

Libor

London Inter Bank Offered Rate. The rate at which banks lend money to each other.

Liquidity

The liquidity of something is how easy it is to convert it into cash. Your current account, for example, is more liquid than your house.

If you needed to sell your house quickly to pay bills you would have drop the price substantially to get a sale.

Loans to deposit ratio

For financial institutions, the sum of their loans divided by the sum of their deposits.

Currently important because using other sources to fund lending is getting more expensive.

Mark-to-market

Recording the value of an asset on a daily basis according to current market prices.

So for a futures contract, what it would be worth if realised today rather than at the specified future date. Also marked-to-market.

Negative equity

Refers to a situation in which the value of your house is below the amount of the mortgage that still has to be paid off.

Profit warning

When a company issues a statement indicating that its profits will not be as high as it had expected. Also profits warning.

R-T

Rating

Bonds are rated according to their safety from an investment standpoint - based on the ability of the company or government that has issued it to repay.

Ratings range from AAA, the safest, down to D, a company that has already defaulted.

Recessionista

A person who manages to look fashionable on a tight budget.

Securitisation

Turning something into a security. For example, taking the debt from a number of mortgages and combining them to make a financial product which can then be traded.

Banks who buy these securities receive income when the original home-buyers make their mortgage payments.

Security

Essentially, a contract that can be assigned a value and traded. It could be a stock, bond or mortgage debt, for example.

Short selling

A technique used by investors who think the price of an asset, such as shares, currencies or oil contracts, will fall. They borrow the asset from another investor and then sell it in the relevant market.

The aim is to buy back the asset at a lower price and return it to its owner, pocketing the difference. Also shorting.

Spiv

A term popularised in World War II for flashily-dressed chancers involved in black market dealings. A fictional spiv is ladies' man Private Joe Walker in Dad's Army.

Newspaper headline writers use "spiv" as shorthand for traders who play for high stakes.

Stagflation

The dreaded combination of inflation and stagnation - an economy that is not growing while prices continue to rise.

Staycation

Staying at home for your holiday in a bid to save money.

Sub-prime mortgages

These carry a higher risk to the lender (and therefore tend to be at higher interest rates) because they are offered to people who have had financial problems or who have low or unpredictable incomes.

Swap

An exchange of securities between two parties. For example, if a firm in one country has a lower fixed interest rate and one in another country has a lower floating interest rate, an interest rate swap could be mutually beneficial.

U-Z

Unwind

To unwind a deal is to reverse it - to sell something that you have previously bought, or vice versa.

When administrators are called in to a bank, they must do the unwinding before creditors can get any money back.

Write-down

Reducing the book value of an asset to reflect a fall in its market value. For example, the write-down of a company's value after a big fall in share prices.

Timeline of the financial crisis

Timeline of Major Events

This is a list of the major events collected from the net. I think it is the best you can get from the net.


HSBC shock announcement begins the pre-panic phase
2007 02 08
HSBC to Boost Loan-Loss Provisions on Bad Mortgages
2007 02 08 Subprime Mortgage Bond Risks Surge, Index Suggests
2007 02 22 HSBC announces departure of two top executives at U.S. business
2007 03 04 US triggers $11bn HSBC fall-out
2007 03 05 New Century Leads Drop in Shares of Mortgage Lenders
2007 03 12 DR Horton warns of huge losses
2007 03 12 New Century shares are suspended
2007 03 21 `Short Sellers' Who Predicted Subprime Rout See More Declines
2007 04 02 New Century Financial in Chapter 11 move
2007 04 05 NovaStar Cuts Off Credit Lines for Mortgage Bankers
2007 05 30 Kensington agrees to £283m buyout

Prelude to panic starts with Bear Stearns hedge fund losses
2007 06 23 $3.2 Billion Move By Bear Stearns To Rescue Fund
2007 07 30 IKB Cuts Profit Forecast Amid Rout in U.S. Mortgages
2007 07 31 American Home Can't Fund Mortgages, Shares Plummet
2007 08 02 Accredited May Face Bankruptcy, Merger in Doubt
2007 08 06 American Home files for bankruptcy
2007 08 08 Fund of German Bank WestLB Stops Payouts, Citing Mortgage Market Unease


Panic of 2007
2007 08 09 BNP Paribas Freezes Funds as Loan Losses Roil Markets
2007 08 14 Goldman and Investors to Put $3 Billion Into Fund
2007 08 15 Countrywide Financial 'risks bankruptcy'
2007 08 17 Fed Cuts Discount Rate to 5.75% to Ease Credit Crunch
2007 08 21 SachsenLB Has EU3 Billion in Subprime, Person Says
2007 08 22 H&R Block Taps Credit Line, Cites `Unstable' Markets
2007 08 22 Lehman, Accredited, HSBC Shut Offices; Crisis Spreads
2007 08 23 Fed lends $2 billion to banks to ease credit woes
2007 08 29 Basis Yield Files Bankruptcy Over Subprime Defaults
2007 09 06 ECB injects 250 Billion euros into markets
2007 09 14 Northern Rock Gets Emergency Bank of England
2007 09 17 NovaStar Can't Pay Dividend, Forfeits REIT Status
2007 09 18 Stocks Surge on Big Fed Rate Cut

Losses show in earnest after Q3
2007 10 05 Merrill in $5.5bn sub-prime loss
2007 10 24 Merrill Lynch Reports Loss on $8.4 Billion Writedown
2007 10 31 Fed Lowers Rate by a Quarter Point to 4.5 Percent
2007 11 08 Morgan Stanley takes $3.7bn hit
2007 11 27 Citigroup to Sell $7.5 Billion Stake to Abu Dhabi
2007 12 06 Black Humor Pervades Norway as Subprime Losses Extend to Arctic
2007 12 10 UBS posts fresh $10bn write-down
2007 12 10 MBIA Gets $1 Billion From Warburg Pincus, Sees Losses
2007 12 10 Bank of America to Liquidate $12 Billion Cash Fund
2007 12 12 Florida Fund Reduced By $1.9 Billion After SIV Losses
2007 12 14 Citigroup Rescues SIVs With $58 Billion Debt Bailout
2007 12 18 The ECB lends over $500 billion for Christmas
2007 12 19 Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC
2007 12 24 Merrill Lynch to Get $6.2 Billion From Temasek, Davis

Losses after Q4 rising
2008 01 15 Citi Writes Down $18 Billion; Merrill Gets Infusion
2008 01 22 As markets implode, Fed panics and cuts 75bps
2008 01 28 Scandal stings not just bank, but French pride, too
2008 01 30 The Federal Reserve cuts again, 50 basis points
2008 02 14 UBS confirms sub-prime $18.4 billion loss
2008 03 03 HSBC in $17bn credit crisis loss
2008 03 06 Peloton Capital hedge fund collapses
2008 03 07 Ambac Gets $1.5 Billion in Capital to Keep AAA Grade
2008 03 11 Carlyle Fund Tries to Halt Liquidation

Bear Stearns collapses
2008 03 11 Central Banks inject $200 billion of liquidity into markets
2008 03 14 JPMorgan and Fed Move to Bail Out Bear Stearns
2008 03 25 Seeking Fast Deal, JPMorgan Quintuples Bear Stearns Bid
2008 03 31 US Treasury Backs Regulatory Overhaul, Broader Fed Role

Losses still rising in 1st Quarter 2008
2008 04 01 UBS writes down another $19 billion
2008 04 01 Deutsche Bank to write down $4B
2008 04 04 MBIA Loses AAA Insurer Rating From Fitch Over Capital
2008 04 08 Washington Mutual Raising $7 Billion
2008 04 14 Wachovia's Loss a Grim Sign for Banks
2008 04 18 Citigroup Reports Loss on $15 Billion of Credit Costs
2008 04 21 Funds to invest up to $8bn in National City bank
2008 04 22 Merrill Raises $9.55 Billion in Sales of Debt, Preferred Shares
2008 04 22 RBS aims to raise $24B in new capital
2008 04 29 Citigroup Sells $3 Billion of Stock to Boost Capital
2008 04 29 HBOS Plans to Raise 4 Billion Pounds in Share Sale
2008 04 30 Citigroup Increases Stock Offering to $4.5 Billion
2008 05 06 Fannie Mae to raise $6bn new capital
2008 05 07 Town of Vallejo, California goes bankrupt
2008 05 09 Citigroup to wind down $400bn of assets
2008 05 19 Banks Keep $35 Billion Markdown Off Income Statements

Renewed Concerns over losses as Q2 progresses
2008 05 26 UBS Falls After Saying More Mortgage Losses Possible
2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
2008 06 02 Bradford & Bingley shares plunge as lender warns on profits
2008 06 05 MBIA, Ambac, $1 Trillion of Debt, Lose S&P AAA Rating

Second leg in write-off: more loans, fewer derivative securities
2008 06 09 Lehman Brothers to post $3 bln loss; sets $6 bln stock sale
2008 06 09 Lehman to post $2.8 billion quarterly loss
2008 06 09 Lehman Cuts $130 Billion of Assets to End Bear Stigma
2008 06 12 KeyCorp to raise $1.5 billion, cut dividend 50%
2008 06 18 Fifth Third Falls on Plan to Raise $2 Billion, Cut Dividend
2008 06 25 Countrywide Sued by California Over Mortgage Loans
2008 06 25 Countrywide Financial Faces Illinois Suit Over Mortgage Loans
2008 06 30 Florida Sues Countrywide
2008 07 07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
2008 07 10 U.S. Mulls Future of Fannie, Freddie

Prelude to 2nd panic begins with IndyMac failure
2008 07 11 IndyMac Seized by U.S. Regulators Amid Cash Crunch
2008 07 18 Barclays and HBOS cash calls shunned
2007 07 25 National Australia Bank tumbles on new $830m provision
2008 07 28 Merrill Has $5.7 Billion of Writedowns, Sells Shares
2008 08 08 Auction-Rate Buybacks: The Bottom Line
2008 08 20 Fannie Mae and Freddie Mac shares fall on fears of size of potential losses
2008 08 20 Lehman's secret talks to sell 50% stake stall

Panic of 2008
2008 09 07 Paulson Engineers U.S. Takeover of Fannie, Freddie
2008 09 15 Lehman Files Biggest Bankruptcy After Suitors Balk
2008 09 15 Lehman Bankruptcy Summons Drexel Ghost 18 Years Later
2008 09 15 Bank of America to Acquire Merrill as Crisis Deepens
2008 09 15 Fed Widens Collateral, Banks Set Up $70 Billion Fund
2008 09 16 Fed to lend $85 billion to AIG, take 80 percent stake
2008 09 18 Lloyds TSB seals £12.2bn HBOS deal
2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure
2008 09 29 B&B nationalisation is confirmed
2008 09 29 Iceland nationalises Glitnir bank
2008 10 03 Dutch part of Fortis is nationalised
2008 10 07 UK makes massive rescue plan for banks
2008 10 08 Fed Will Lend Directly to Corporations



Escalating Loss Estimates


2007 06 30
$250 Billion in Subprime Losses?
2007 10 09 US subprime losses may reach $150 billion: S&Pnews
2007 11 12 Subprime Losses May Reach $400 Billion, Analysts Say
2007 11 20 Subprime crisis seen spilling into 2009; Losses top out at $270 Billion
2007 11 22 U.S. subprime losses may hit $300 billion, OECD estimates
2008 01 31 Subprime, CDO Bank Losses May Exceed $265 Billion
2008 01 31 S&P sees more than $265 bln subprime losses
2008 02 11 Credit writedowns may total $175B - analyst
2008 02 29 Financial Firms Face $600 Billion of Losses, UBS Says
2008 03 13 Subprime losses may reach 285 billion dollars: S&P
2008 04 08 IMF says writedowns on US assets could total $945bn
2008 04 15 OECD raises subprime loss tally to $350-420 bln
2008 04 16 OECD predicts subprime losses to hit $420bn
2008 04 23 Subprime write-downs hit $269 billion
2008 04 29 $800 Billion more in Subprime, Alt-A Mortgages May Head `Underwater'
2008 05 14 Subprime losses by global banks total US$400 billion: Fitch
2008 05 20 Credit Crisis Will Extend Into 2009, $170 bn in additional writeoffs
2008 06 02 Wall Street May Face $460 Bln in Losses, Goldman Says
2008 06 18 Paulson & Co. Says Writedowns May Reach $1.3 Trillion
2008 07 07 Treasuries Little Changed; SonntagsZeitung Says Losses to Grow
2008 08 07 Yes, That's $2 Trillion of Debt-Related Losses
2008 10 07
IMF estimates US mortgage losses to hit $US1.4 trillion



Running Bank Writedown Table (Bloomberg)


2007 12 27
Subprime Bank Losses Reach $97 Billion, Led by Citigroup: Table
2008 01 22 Subprime Bank Losses Reach $133 Billion, Led by Merrill: Table
2008 01 31 Subprime Bank Losses Reach $146 Billion as Europe Joins: Table
2008 02 22 Subprime Losses Reach $163 Billion With Asian Banks
2008 02 29 Subprime Losses Reach $181 Billion With European Banks: Table
2008 03 07 Subprime Losses Reach $188 Billion With Canada, Europe: Table
2008 03 14 Subprime Losses Reach $195 Billion; German Banks Get Hit: Table
2008 03 26 Subprime Losses Exceed $208 Billion With U.S. Writedowns: Table
2008 04 01 Subprime Losses Reach $232 Billion With UBS, Deutsche: Table
2008 04 10 Subprime Bank Losses Reach $245 Billion With WaMu, HSH: Table
2008 04 28 Subprime Bank Losses Reach $312 Billion With RBS, Nomura: Table
2008 05 09 Subprime Bank Losses Top $323 Billion With HBOS, Lloyds: Table
2008 05 19 Subprime Losses Top $379 Billion on Balance-Sheet Marks: Table
2008 06 18 Subprime Losses Top $396 Billion on Brokers' Writedowns: Table
2008 07 02 Reference within article: Writedowns have topped $403 Billion
2008 07 15 Reference within article: Writedowns reach $415 Billion
2008 07 22 Reference within article: Writedowns reach $462 Billion
2008 07 23 Reference within article: Writedowns reach $467 Billion
2008 07 30 Reference within article: Writedowns reach $474 Billion
2008 07 31 Reference within article: Writedowns reach $476 Billion
2008 08 07 Reference within article: Writedowns reach $493 Billion
2008 08 08 Reference within article: Writedowns reach $497 Billion
2008 08 12 Banks' Subprime Losses Top $500 Billion on Writedowns
2008 08 20 Banks' Subprime Market-Related Losses, Capital Raised: Table
2008 08 27 Banks' Subprime Market-Related Losses Reach $506 Billion: Table




Job Losses


2008 01 24
Morgan Stanley, Lehman, Credit Suisse Cut 1,640 Jobs
2008 02 26 Banks Cut More Than 28,000 Jobs as Subprime Losses Mount: Table
2008 03 24 Wall Street Firms Cut 34,000 Jobs, Most Since 2001 Dot-Com Bust
2008 04 22 Banks Cut 48,000 Jobs as Subprime Losses Mount: Table
2008 05 06 Banks, Brokers Cut 65,000 Jobs as Subprime Losses Mount: Table
2008 05 27 Banks, Brokers Cut 83,000 Jobs as Subprime Losses Mount: Table




Capital Raising


2008 01 15
Citigroup, Merrill Receive $21 Billion From Investors
2008 02 01 Banks Look Overseas, Markets to Raise $84 Billion
2008 04 02 Banks Get $136 Billion From Governments, Private Sources: Table
2008 04 16 Banks Get $163 Billion From Governments, Private Sources: Table
2008 04 30 Banks Raise $231 Billion Capital as Credit Losses Surge: Table
2008 06 18 Banks raise $302 Billion in Capital after Brokers' Losses
2008 07 02 Reference within article: Capital raising has topped $322 Billion
2008 07 15 Reference within article: Capital raising tops $325 Billion
2008 07 22 Reference within article: Capital raising at $345 Billion
2008 08 12 Banks raise $353 Billion in Capital
2008 08 20 Banks' Subprime Market-Related Losses, Capital Raised: Table

Foreclosure Estimates
2007 03 12 Foreclosures May Hit 1.5 Million in U.S. Housing Bust




Financial Insitutions


List of bank mergers in the United States
United States' Largest Banks

List of banks in the United Kingdom
List of building societies in the United Kingdom
Biggest Mortgage Lenders (for 2007)

US Major Banks
Bank of America (incl. Countrywide Financial)
2007 07 24
Rising defaults hit top US lender
2007 08 15 Top US lender 'risks bankruptcy'
2007 08 16 Liquidity woes hit more lenders
2007 08 23 US mortgage firm gets $2bn boost
2007 11 13 Bank of America in sub-prime hit
2007 11 13 Bank of America Sees $3 Billion Write-Off, CFO Says
2007 12 10 Bank of America to Liquidate $12 Billion Cash Fund
2008 01 11 Bank of America buys Countrywide
2008 01 23 Bank of America Joins Parade of Mortgage-Related Losses
2008 04 21 Bank of America's profit drops 77 percent in first quarter
2008 04 29 Countrywide Reports $893 Million Loss From Bad Loans
2008 05 06 You've Been Warned: Bank of America Eyeing Countrywide
2008 06 18 'Friends of Angelo' Get Good Loans
2008 06 18 Senate Panel to Review Conrad's Countrywide Home Loans
2008 06 25 Text of the California suit, (PDF)
2008 06 25 Illinois Plans to Sue Countrywide, CEO
2008 06 25 Bank of America's Countrywide Tab Signed by Taxpayers
2008 06 25 Countrywide Sued by California Over Mortgage Loans
2008 06 25 Countrywide Financial Faces Illinois Suit Over Mortgage Loans
2008 06 30 Florida Sues Countrywide
2008 07 21 Earnings Fall 44% at Bank of America
2008 07 24 San Diego Sues Bank of America Over Foreclosures
2008 09 15 Bank of America to Acquire Merrill as Crisis Deepens
2008 10 06 BofA earnings tumble, cuts dividend
2008 10 06 Countrywide to Set Aside $8.4 Billion in Loan Aid

Citigroup
1998 04 07 In Largest Deal Ever, Citicorp Plans Merger with Travelers Group
2007 10 02 Write-Downs by Big Banks Spark Rally
2007 11 03 Citigroup Chief Is Set to Exit Amid Losses
2007 11 04 Citigroup's Prince Steps Down, Rubin Named Chairman
2007 11 27 Citigroup to Sell $7.5 Billion Stake to Abu Dhabi
2007 12 14 Citigroup Rescues SIVs With $58 Billion Debt Bailout
2008 01 15 Citigroup's $9.8bn sub-prime loss
2008 01 15 Citigroup Loses $9.8 Billion; Will Cut Jobs
2008 01 16 Citigroup's Big Loss Fuels Anxiety and Depresses Stocks
2008 04 18 Citigroup Reports Loss on $15 Billion of Credit Costs
2008 04 29 Citigroup Sells $3 Billion of Stock to Boost Capital
2008 04 30 Citigroup Increases Stock Offering to $4.5 Billion
2008 05 09 Pandit Citigroup Turnaround Plan May Mean Asset Sales
2008 05 09 Citigroup to wind down $400bn of assets
2008 06 09 Citigroup, Merrill, UBS Face Further Writedowns, Whitney Says
2008 06 11 Banks face $10bn monolines charges
2008 06 23 Citigroup and Goldman Sachs cut more staff as effect of credit crunch lingers
2008 07 18 Citi Posts Smaller-Than-Estimated Loss on Writedown
2008 08 07 Citigroup reaches SEC settlement on auction rate securities
2008 09 29 Citigroup Acquires Most of Wachovia; "Not a Failure," FDIC Says
2008 10 03 Wells bids $15 billion for Wachovia; scuffles with Citi
2008 10 05 The Citi Restraining Order and Supporting Motion

JPMorgan Chase (incl. Bear Stearns and WaMu)
2006 02 16 Washington Mutual to Cut 2,500 Jobs
2007 06 12 Bear Stearns' Subprime Bath
2007 06 23 Bear Stearns Fund Collapse Sends Shock Through CDOs
2007 06 23 $3.2 Billion Move By Bear Stearns To Rescue Fund
2007 06 26 Bear Stearns provides update on BSAM structured credit strategies funds
2007 07 18 Bear Stearns Says Battered Hedge Funds Are Worth Little
2007 08 02 Bear Stearns funds enter bankruptcy
2007 08 07 Bear Stearns Caymans Filing May Hurt Funds' Creditors
2007 08 09 Bear Stearns sued over hedge fund collapse
2007 09 12 Washington Mutual, First Horizon Cut Jobs From Mortgage Units
2007 11 15 Bear Stearns Credit Rating Cut by S&P on Writedowns
2007 11 21 Bear Stearns's Former President to Keep $23 Million
2007 11 28 Bear Stearns to Cut 650 Jobs Amid Mortgage Losses
2007 12 11 Washington Mutual Cutting Dividend and Jobs
2007 12 19 Bear Stearns Hedge Fund Manager Departs Amid Probes
2007 12 20 Bear Stearns Posts First Loss on Mortgage Writedowns
2007 12 20 Barclays sues Bear Stearns over hedge fund collapses
2008 01 09 Bear Stearns boss Cayne resigns
Timeline of JP Morgan Chase's acquisition of Bear Stearns
2008 01 16 JP Morgan's $1.3bn sub-prime hit
2008 01 18 Write-Down Contributes to Profit Fall at Trust Bank
2008 03 14 JPMorgan and Fed Move to Bail Out Bear Stearns
2008 03 14 Bear Stearns Has Credit Ratings Slashed After Bailout
2008 03 15 Run on Big Wall St. Bank Spurs U.S.-Backed Rescue
2008 03 25 Seeking Fast Deal, JPMorgan Quintuples Bear Stearns Bid
2008 04 07 Bear Stearns Sued for $1 Billion by Fund Liquidators
2008 04 16 JPMorgan Chase's profit drops 50 pct in 1Q on reserves boost
2008 04 08 Washington Mutual Raising $7 Billion
2008 04 09 WaMu's Hedge: CEO Called In Dimon & Co.
2008 04 15 A Loss and a Shake-up at Washington Mutual
2008 05 29 Bear Stearns Holders Approve Purchase, Ending Era
2008 06 02 Washington Mutual's Killinger Steps Down as Chairman
2008 06 09 Washington Mutual Falls on $22 Billion Loss Estimate
2008 06 19 WaMu cuts 1,200 more jobs as part of cost reductions
2008 07 14 WaMu Leads Steepest-Ever Decline in Bank Stock Index
2008 07 15 Washington Mutual Drop Wipes Out Most of TPG Holding
2008 07 17 J.P. Morgan Chase's profit off 53%, tops target
2008 07 17 JPMorgan Profit Falls 53% Amid Higher Charges
2008 07 22 WaMu Has $3.3 Billion Quarterly Loss on Delinquencies
2008 07 24 WaMu Slumps as Gimme Credit Cites Liquidity Concern
2008 08 12 JP Morgan Takes $1.5 Billion Mortgage-Backed Hit in July
2008 08 20 JPMorgan Warned California as Auction Market Neared Collapse

2008 09 08 WaMu's New Chief Prepares To Dive In Amid Skepticism
2008 09 09 Counterparty credit risks climb on Lehman, WaMu
2008 09 16 WaMu Falls as S&P Cuts Lender's Credit Rating to Junk
2008 09 24 WaMu Cut Again by S&P as Pressure Rises to Reach Deal
2008 09 24 Fitch: Partial Sale Increasingly Likely for WaMu; IDR Downgraded to 'B-'
2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure
2008 09 25 WaMu's 42-Story Seattle Headquarters Acquired in JPMorgan Deal

SunTrust Bank

2008 04 22 SunTrust Profit Falls 45% on Provisions for Bad Loans
2008 07 22 SunTrust Profit Declines as Borrowers Fall Behind

US Bancorp
2008 07 15 U.S. Bancorp Profit Falls on Higher Credit Losses

Wachovia
2001 04 17 THE MARKETS: Market Place; First Union Pursues Wachovia, Making Offer of $13.1 Billion
2006 05 07 Paper: Wachovia nears $26B takeover of Golden West
2007 10 20 Wachovia Profit Declines 10%; Job Cuts Ahead
2007 11 09 Wachovia reveals more debt losses
2008 01 23 Wachovia's Big-City Splash Has a Sobering Aftermath
2008 04 14 Wachovia's Loss a Grim Sign for Banks
2008 05 20 Wachovia, Fifth Third Face Losses Tied to Hedge Funds
2008 06 02 Wachovia Ousts Thompson on Writedowns, Share Plunge
2008 07 10 Wachovia's Capital `Solid' After Quarterly Loss, Smith Says
2008 07 15 Meredith Whitney Cuts Wachovia on `Bleak' Prospects
2008 07 22 Wachovia Has Record $8.9 Billion Loss, Cuts Dividend
2008 07 22 Wachovia ends wholesale mortgages
2008 07 25 Wachovia's Finance Chief Resigns
2008 08 12 Wachovia Increases Second-Quarter Loss
2008 08 20 Wachovia Unloads Troubled Loans
2008 09 29 Citigroup Acquires Most of Wachovia; "Not a Failure," FDIC Says
2008 10 03 Wells bids $15 billion for Wachovia; scuffles with Citi
2008 10 05 The Citi Restraining Order and Supporting Motion

Washington Mutual
2006 02 16 Washington Mutual to Cut 2,500 Jobs
2007 09 12 Washington Mutual, First Horizon Cut Jobs From Mortgage Units
2007 12 11 Washington Mutual Cutting Dividend and Jobs
2008 01 18 Write-Down Contributes to Profit Fall at Trust Bank
2008 04 08 Washington Mutual Raising $7 Billion
2008 04 09 WaMu's Hedge: CEO Called In Dimon & Co.
2008 04 15 A Loss and a Shake-up at Washington Mutual
2008 06 02 Washington Mutual's Killinger Steps Down as Chairman
2008 06 09 Washington Mutual Falls on $22 Billion Loss Estimate
2008 06 19 WaMu cuts 1,200 more jobs as part of cost reductions
2008 07 14 WaMu Leads Steepest-Ever Decline in Bank Stock Index
2008 07 15 Washington Mutual Drop Wipes Out Most of TPG Holding
2008 07 22 WaMu Has $3.3 Billion Quarterly Loss on Delinquencies
2008 07 24 WaMu Slumps as Gimme Credit Cites Liquidity Concern
2008 09 08 WaMu's New Chief Prepares To Dive In Amid Skepticism
2008 09 09 Counterparty credit risks climb on Lehman, WaMu
2008 09 16 WaMu Falls as S&P Cuts Lender's Credit Rating to Junk
2008 09 24 WaMu Cut Again by S&P as Pressure Rises to Reach Deal
2008 09 24 Fitch: Partial Sale Increasingly Likely for WaMu; IDR Downgraded to 'B-'
2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure
2008 09 25 WaMu's 42-Story Seattle Headquarters Acquired in JPMorgan Deal

Wells Fargo
2007 07 27 Wells Fargo to Limit Subprime Lending
2007 11 28 Bracing for Home Loan Losses, Wells Fargo to Take Big Charge
2008 01 08 Baltimore Is Suing Bank Over Foreclosure Crisis
2008 04 16 Wells Fargo Beats, But Loan Worries Persist
2008 07 16 Wells Fargo Profit Exceeds Estimates; Shares Jump
2008 09 15 Wells Fargo takes Lehman Related Charge
2008 10 03 Wells bids $15 billion for Wachovia; scuffles with Citi
2008 10 05 The Citi Restraining Order and Supporting Motion



US Regional Banks


2008 01 16
Regional U.S. Banks May Report Record Drop in Profit
2008 07 15 Regional Banks Take It on the Chin As Fallout Spreads
2008 07 15 National City, Regional Banks Plunge After IndyMac's Failure
2008 09 16 Wells Fargo Takes Another Hit

BankAtlantic
2008 07 22 BankAtlantic Sues Analyst for Defamation

BankUnited
2008 09 08 BankUnited Sees Regulatory Capital Status Downgraded


Columbia Bancorp
2008 07 08 Columbia Bancorp Warns of Q2 Loss on Souring C&D Outlook

Comerica
2008 01 17 First Horizon, Comerica Lead Regional Banks Lower

Fifth Third Bancorp
2008 04 22 Fifth Third Beats Consensus
2008 05 20 Wachovia, Fifth Third Face Losses Tied to Hedge Funds
2008 06 13 Fifth Third plunges 11% on analyst cut
2008 06 18 Fifth Third Falls on Plan to Raise $2 Billion, Cut Dividend
2008 07 22 Fifth Third Reports $202 Million Loss on Higher Loan Defaults

First Horizon
2007 09 12 Washington Mutual, First Horizon Cut Jobs From Mortgage Units
2008 01 17 First Horizon, Comerica Lead Regional Banks Lower
2008 07 15 First Horizon Says Jordan to Replace Baker as Chief
2008 07 15 First Horizon reports quarterly net loss

Gateway Bank
2008 09 11 Gateway Bank to take writedown on Fannie, Freddie shares

Huntington Bancshares
2007 11 16 Huntington Falls on Forecast of Fourth-Quarter Loss
2008 06 03 Huntington Bancshares Sells $975 Million in Auto-Loan Debt
2008 06 19 Huntington Expects Bad Loans at High End of Forecast
2008 06 20 Huntington Surges on Promise to Corral Bad Loans
2008 07 17 Huntington shares gain in wake of results
2008 08 18 Huntington shares slide after client warns of loss

KeyCorp
2008 05 28 KeyCorp Slide Foretells Losses at `Delusional' Banks
2008 06 12 KeyCorp to raise $1.5 billion, cut dividend 50%
2008 07 22 KeyCorp Posts First Loss Since 2001 After Tax Case

M&T Bank
2008 07 14 M&T Bank Falls After Second-Quarter Profit Slumps 25%

Marshall and Ilsley
2008 07 03 Marshall & Ilsley Announces 2008 Q2 Provision of up to $900 Million
2008 07 16 Marshall & Ilsley posts second-quarter loss of $394 million

National City
2008 01 02 National City to Trim Dividend by 49%, Cut 900 Jobs
2008 04 21 Funds to invest up to $8bn in National City bank
2008 06 06 National City Is Under U.S. Scrutiny
2008 07 14 National City says not experiencing unusual activity
2008 07 25 National City Posts $1.76 Billion Loss
2008 10 03 Fitch lowers National City's debt ratings

Regions Financial
2008 07 22 Regions Cuts Dividend as Profit Falls on Missed Loans

Zions
2008 06 17 Zions falls the most in six years on expected rise in bad loans
2008 08 13 Zions lead financials lower at open




Former US Investment Banks


Goldman Sachs
2007 08 14
Goldman and Investors to Put $3 Billion Into Fund
2007 11 19 Goldman Sachs Rakes In Profit in Credit Crisis
2008 06 23 Citigroup and Goldman Sachs cut more staff as effect of credit crunch lingers
2008 09 16 Goldman Sachs net plunges
2008 09 21 As Goldman and Morgan Shift, a Wall St. Era Ends
2008 10 03 Goldman Hit With Auction-Rate Securities Suit

Legg Mason
2008 05 06 Legg Mason Posts First Loss

Lehman Brothers
2007 12 13 Lehman earnings fall amid $830 million writedown
2007 01 17 Lehman to cut 1,300 mortgage jobs
2008 03 18 US bank profits more than halved
2008 04 29 Lehman Plans EU1.1 Billion CLO to Cut Buyout Loans
2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
2008 06 03 Lehman May Need to Raise Capital as Analysts See Loss
2008 06 03 Living without the Bear buffer
2008 06 03 Losses Push Lehman To Weigh Raising New Capital
2008 06 03 Lehman Denies Fed Borrowing, Says Cash Holdings Rose
2008 06 09 Lehman Brothers to post $3 bln loss; sets $6 bln stock sale
2008 06 09 Lehman to post $2.8 billion quarterly loss
2008 06 09 Lehman Cuts $130 Billion of Assets to End Bear Stigma
2008 08 20 Possible Lehman asset management sale portends pain - Reuters
2008 08 20 Lehman's secret talks to sell 50% stake stall
2008 08 21 Fed Acted on Lehman Rumor
2008 09 09 Counterparty credit risks climb on Lehman, WaMu
2008 09 09 KDB's Attempt to Invest In Lehman Appears Over
2008 09 10 Lehman Sees $3.9 Billion Loss and Plans to Shed Assets
2008 09 10 Lehman to Sell Neuberger Stake, Spin Off Real Estate
2008 09 15 Lehman Files Biggest Bankruptcy After Suitors Balk
2008 09 22 Nomura buys Lehman Brothers Asia units
2008 09 23 Nomura Acquires 2 More Lehman Units


Merrill Lynch
2007 09 15 Profit Warning by Merrill
2007 10 04 2 Executives Are Ousted at Merrill
2007 10 05 Merrill in $5.5bn sub-prime loss
2007 10 06 A Big Loss at Merrill Stirs Unease
2007 10 24 Merrill Lynch Reports Loss on $8.4 Billion Writedown
2007 10 30 Merrill Lynch chief leaves firm
2007 11 20 Merrill Lynch Ousts Asian Fixed-Income Co-Head Roy
2007 12 24 Merrill Lynch to Get $6.2 Billion From Temasek, Davis
2008 01 15 Citi Writes Down $18 Billion; Merrill Gets Infusion
2008 01 18 Merrill Posts Huge Loss; Chief Says Firm's Capital Is Adequate
2008 04 17 Merrill Lynch posts steep first-quarter loss on write-downs
2008 04 17 Merrill Lynch set to cut 10% of its worldwide workforce
2008 04 22 Merrill Raises $9.55 Billion in Sales of Debt, Preferred Shares
2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
2008 06 09 Citigroup, Merrill, UBS Face Further Writedowns, Whitney Says
2008 06 11 Banks face $10bn monolines charges
2008 07 17 Merrill reports $4.65 billion quarterly net loss
2008 07 17 Merrill Lynch hit by $9.4bn writedown
2008 07 28 Merrill Has $5.7 Billion of Writedowns, Sells Shares
2008 07 31 Merrill Defrauded Auction-Rate Investors, State Says
2008 09 15 Bank of America to Acquire Merrill as Crisis Deepens

Morgan Stanley
2007 11 08 Morgan Stanley takes $3.7bn hit
2007 11 30 Morgan Stanley Executive Ousted After Trading Loss
2007 12 19 Morgan Stanley takes $9.4bn hit
2008 05 06 Morgan Stanley to Cut 5% of Staff
2008 05 15 Morgan Stanley aims to axe 350 London jobs
2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
2008 06 18 Morgan Stanley Profit Drops on Debt Losses, Trading
2008 08 06 Morgan Stanley Said to Freeze Home-Equity Credit Withdrawals
2008 08 08 Morgan Stanley to Pay $1.5 Million in Auction-Rate Settlement
2008 09 16 Morgan Stanley profit falls 3 percent
2008 09 21 As Goldman and Morgan Shift, a Wall St. Era Ends
2008 09 23 Japan's biggest bank to buy 20% stake in Morgan Stanley




Mortgage Financial

2007 03 29 California Investigates Subprime Mortgage Industry
2007 05 30 Subprime Fiasco Exposes Manipulation by Mortgage Brokerages
2007 08 23 Toll of Lenders Tops 100: Subprime Scorecard
2008 06 05 Frank-Dodd Rescue Prolongs Housing Crisis by Deferring Defaults

Accredited Home Lenders
2007 03 13 Accredited Shares Fall, New Century Trading Suspended
2007 06 04 Accredited Agrees to $400 Million Buyout by Lone Star
2007 07 31 American Home Can't Fund Mortgages, Shares Plummet
2007 08 02 Accredited May Face Bankruptcy, Merger in Doubt
2007 08 13 Accredited Shares Fall After Lone Star Backs Away
2007 08 22 Accredited Home Fires 1,600, Shuts Most Operations
2007 08 31 Lone Star Cuts Offer for Accredited to $214 Million
2007 09 18 Accredited Accepts Lone Star's $296 Million Offer, Halts Suit

American Home Mortgage
2007 07 31 American Home Can't Fund Mortgages, Shares Plummet
2007 08 06 US lender on brink of bankruptcy
2007 08 07 American Home Mortgage's new chapter opens in bankruptcy court
2008 08 19 American Home to pay fraction of bankruptcy claims

Capital One
2004 02 17 North Fork to Acquire GreenPoint Financial for $6.3 Billion
2006 03 17 North Fork Deal Caps an Investment Bank's Comeback
2007 08 20 Capital One Shuts Down GreenPoint Mortgage Unit
2007 08 21 Capital One Financial to Quit Residential Mortgage Business
2007 08 21 Sub-prime fallout weighs on firms
2008 07 18 Capital One Falls After Profit Misses Estimates on Defaults

Fannie Mae
2007 12 04 US mortgage giant in share issue
2008 05 06 Fannie Mae loses $2.2-billion
2008 05 06 Fannie Mae to raise $6bn new capital
2008 07 07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
2008 07 09 Fannie Mae Pays Record Spreads on Two-Year Note Sale
2008 07 10 U.S. Mulls Future of Fannie, Freddie
2008 07 15 Scramble Led to Rescue Plan on Mortgages
2008 08 04 Fannie's Mudd Soothed Asian Investors as Bonds Rose
2008 08 08 Fannie Mae Posts Fourth Straight Loss, Cuts Dividend
2008 08 15 Fannie, Freddie debt faces confidence crisis overseas
2008 08 20 Fannie Mae and Freddie Mac shares fall on fears of size of potential losses

2008 08 20 Fed's Lacker Clashes With Paulson on Fannie-Freddie Strategy
2008 09 07 Paulson Engineers U.S. Takeover of Fannie, Freddie
2008 09 08 Fannie, Freddie Credit-Default Swaps May Be Settled
2008 09 10 Fannie to Pay Third-Quarter Preferred Stock Dividends

Freddie Mac
2007 11 20 Freddie Mac in $6bn share issue
2007 11 21 Freddie Mac, a Buffer Against Crisis, Posts $2 Billion Loss
2008 02 29 Freddie Mac Reports $2.5 Billion Loss: Panel to Assess Management
2008 07 07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
2008 07 09 Freddie Mac Dips Below $10 a Share for First Time Since 1992
2008 07 10 U.S. Mulls Future of Fannie, Freddie
2008 07 15 Scramble Led to Rescue Plan on Mortgages
2008 08 06 Freddie Mac Posts Fourth Straight Loss, Cuts Dividend
2008 08 15 Fannie, Freddie debt faces confidence crisis overseas
2008 08 20 Fannie Mae and Freddie Mac shares fall on fears of size of potential losses
2008 08 20 Fed's Lacker Clashes With Paulson on Fannie-Freddie Strategy

2008 09 07 Paulson Engineers U.S. Takeover of Fannie, Freddie
2008 09 08 Fannie, Freddie Credit-Default Swaps May Be Settled

Fremont General
2007 02 28 Fremont General Shares Plummet on Delay in Filing
2007 03 05 Fremont General Puts Some Mortgage Staff on Leave
2007 03 19 Fremont General Gives Mortgage Staff Two-Month Dismissal Notice
2007 05 22 Fremont Sells Lending Unit, Replaces Top Managers
2007 09 26 Fremont Says Ford Isn't Prepared to Complete Purchase
2008 03 21 Fremont Sale Clears Out $4 Billion of Subprime Loans
2008 03 28 Fremont Ordered by FDIC to Find Buyer; Curbs Imposed
2008 05 09 Fremont May Go Bankrupt If Asset Sale Plan Falters

GE (WMC Mortgage)
2007 03 09 General Electric's WMC Mortgage Cuts Subprime Jobs
2007 04 19 GMAC, GE Will Cut 1,400 Job Cuts on Subprime Decline
2007 07 13 GE Will Seek Buyer for Subprime Unit After Defaults


GMAC
2007 04 19 GMAC, GE Will Cut 1,400 Job Cuts on Subprime Decline
2007 05 03 Sub-prime mortgage crisis hits GM
2007 11 01 GMAC, Radian Post Losses as U.S. Home Slump Deepens
2008 02 05 Sub-prime crisis hurts US lender
2008 04 29 GMAC Posts $589 Million Loss on Home Lending Woes
2008 05 08 GMAC Outlines Asset Sales to Aid Residential Capital
2008 06 03 ResCap Default Swaps Rise on Cerberus, GMAC Infusion
2008 07 31 GMAC Reports $2.5 Billion Loss on Auto, Housing Slump


H&R Block

2007 08 22 H&R Block Taps Credit Line, Cites `Unstable' Markets
2007 11 20 H&R Block's Mark Ernst Quits, Breeden Named Chairman of Board

IndyMac
2007 07 31 IndyMac's Net Falls 57 Percent as Defaults Surge
2007 11 06 IndyMac Reports $202.7 Million Loss on Late Payments
2008 02 12 IndyMac Posts Record Loss, Calls Reserves Adequate
2008 04 09 IndyMac Sells First Non-Agency Bonds in Two Months
2008 05 12 IndyMac Reports Loss, Doesn't See Profit in 2008
2007 06 13 IndyMac Sued Over Investor Claims It Hid Loan Losses
2008 06 30 IndyMac to Trim Operations, Not Shut Down, Perry Says
2008 07 01 IndyMac Chief Financial Officer A. Scott Keys Resigns
2008 07 07 IndyMac Cuts Half its Staff as Mortgage Losses Mount
2008 07 08 IndyMac Falls After Regulators Say It Isn't `Well Capitalized'
2008 07 11 IndyMac Bancorp Is Seized By Federal Regulators
2008 07 11 IndyMac Seized by U.S. Regulators Amid Cash Crunch

2008 07 29 IndyMac: The Downfall of a California Dreamer
2008 08 20 FDIC Releases Details on IndyMac Loan Mods; Questions Remain
2008 08 20 California mulls probing senator over IndyMac crash

Kensington
2007 05 30 Kensington agrees to £283m buyout

New Century Financial
2007 02 08 Home Lenders Plunge as More Subprime Mortgages Sour
2007 03 05 New Century Leads Drop in Shares of Mortgage Lenders
2007 03 12 New Century shares are suspended
2007 04 02 Top US lender in Chapter 11 move

Novastar Financial
2007 02 21 NovaStar Sheds One-Third of Value After Posting Loss
2007 04 05 NovaStar Cuts Off Credit Lines for Mortgage Bankers
2007 09 04 NovaStar Auditor Raises Doubt About Lender's Survival
2007 09 17 NovaStar Can't Pay Dividend, Forfeits REIT Status
2007 10 16 Morgan Stanley Buys NovaStar Rights for $175 Million
2007 12 18 Fitch Affirms $938.68MM & Downgrades $41.25MM from 1 Novastar 2005 Subprime Deal
2008 01 11 NYSE To Suspend, Apply to Delist, NovaStar Financial





Insurance


ACA
2007 12 19
Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC

AIG
2008 05 09 AIG off 9% on record loss, plan to raise $12.5 billion
2008 05 19 AIG to raise roughly $20 billion in capital
2008 05 23 Moody's Cuts AIG Rating
2008 06 06 SEC reportedly probing AIG's swaps
2006 06 16 AIG Ousts Sullivan, Taps Willumstad As Losses Mount
2008 06 27 AIG Poised to Absorb $5 Billion Losses From Securities-Lending
2008 08 06 A.I.G. Posts a Large Loss as Housing Troubles Persist
2008 09 15 AIG's Ratings Cut by S&P, Moody's, Threatening Fund Raising
2008 09 16 Fed to lend $85 billion to AIG, take 80 percent stake
2008 09 24 AIG slumps after signing up for $85 billion Fed loan
2008 09 26 Greenberg Sells 40 Million AIG Shares, Cutting Stake in Insurer

Ambac
2007 12 19 Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC
2008 01 16 Ambac Will Cut Dividend, Raise $1 Billion in Capital
2008 01 19 Ambac's Insurance Unit Cut to AA From AAA by Fitch Ratings
2008 01 22 Ambac Reports Loss, Talks With `Potential Parties'
2008 02 25 Ambac Rises on $3 Billion Rescue to Avert Downgrade
2008 03 06 Ambac to Sell Half the Company; Bet May Not Pay Off
2008 03 07 Ambac Gets $1.5 Billion in Capital to Keep AAA Grade
2008 04 23 Ambac swings to 1Q loss as it takes $3.06 billion in charges
2008 04 30 Banks to aid Ambac with up to $3bn (Paid site $)
2008 05 28 Ambac shares hit record low after new disclosure
2008 06 05 MBIA, Ambac, $1 Trillion of Debt, Lose S&P AAA Rating
2008 06 09 Citigroup, Merrill, UBS Face Further Writedowns, Whitney Says
2008 06 11 Banks face $10bn monolines charges
2008 06 18 Ambac Financial to Terminate Its Contract With Fitch Ratings
2008 07 07 Ambac hopeful on Connie Lee capitalization
2008 08 06 Ambac Posts $823 Million Net Income; CDO Losses Rise

American Express
2008 07 22 American Express Declines as Earnings Fall Short of Estimates

MBIA
2007 12 10 MBIA Gets $1 Billion From Warburg Pincus, Sees Losses
2007 12 19 Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC
2008 01 31 MBIA Posts Biggest Loss, Considers New Capital Plans
2008 02 07 MBIA to Sell $750 Million of Stock to Avert Downgrade
2008 02 19 MBIA Former Chief Returns as Credit Rating Cut Looms
2008 04 04 MBIA Loses AAA Insurer Rating From Fitch Over Capital
2008 06 05 MBIA, Ambac, $1 Trillion of Debt, Lose S&P AAA Rating
2008 06 09 Citigroup, Merrill, UBS Face Further Writedowns, Whitney Says
2008 06 11 Banks face $10bn monolines charges
2008 08 08 MBIA reports surprise profit of $1.7 billion

MGIC
2008 06 05 MGIC, PMI Downgraded by Fitch on Poor Underwriting
2008 06 20 Freddie Mac Says MGIC, Radian Insurance Acceptable

PMI Group
2008 06 20 Freddie Mac Says MGIC, Radian Insurance Acceptable

Radian Group
2007 08 07 MGIC may call off merger deal
2007 11 01 GMAC, Radian Post Losses as U.S. Home Slump Deepens
2008 06 20 Freddie Mac Says MGIC, Radian Insurance Acceptable
2008 07 07 Radian shares surge more than 50%

Triad
2008 06 19 Triad Will Stop Insuring Mortgages as Talks Collapse
2008 06 24 Triad Guaranty's Dismissal of Employees to Cost $7.5 Million
2008 06 24 Triad Chief Seeks AA-Rated Investor to Fund Venture

Investors


Basis Capital
2007 08 29 Basis Yield Files Bankruptcy Over Subprime Defaults

Blackstone
2008 05 15 Blackstone Posts $251 Million Loss

Carlyle Group
2008 03 11 Carlyle Fund Tries to Halt Liquidation
2008 03 14 Boss rues collapse of hedge fund
2008 07 31 Carlyle to Shutter Blue Wave Hedge Fund After Losses


Peloton Partners
2008 03 06 High-profile hedge fund collapses




UK


Alliance & Leicester
2008 05 14
Alliance & Leicester shares fall on write-downs
2008 07 06 Alliance and Leicester aims to save £80m on dividend
2008 07 14 Santander's takeover of Alliance & Leicester spells shake-up of high street banks
2008 07 14 Alliance & Leicester takeover angers unions and shareholders
2008 08 01 Credit crunch leaves Alliance & Leicester's profits in tatters

Barclays
2007 04 29 Battle of the banks
2007 08 21 Bank of England Lent Money at Emergency Rate
2007 11 15 Barclays reveals sub-prime losses
2008 05 02 Barclays May Raise 3 Billion Pounds, Dresdner Says
2008 05 15 Barclays reports a $1.94-billion writedown
2008 07 18 Barclays Investors Buy 19% of Shares on Sale in Offer
2008 07 18 Barclays and HBOS cash calls shunned
2008 08 07 Barclays' profits drop a third

Bradford and Bingley
2008 02 13 Bradford & Bingley profits slide
2008 04 13 Bank denies cash-raising reports
2008 05 15 Big investors pan Bradford & Bingley for £300m rights issue
2008 06 02 Bradford & Bingley shares plunge as lender warns and TPG takes stake
2008 07 04 Bradford & Bingley Investors on the Hook as TPG Walks
2008 07 07 Regulator watching troubled UK bank
2008 07 07 Bradford & Bingley May Seek Guarantor for $14 Billion of Bonds
2008 07 09 Bradford & Bingley Advances on Takeover Speculation
2008 07 18 B&B Shareholders Approve Rights Issue
2008 08 18 Bradford & Bingley shareholders shun £400m cash call
2008 09 29 B&B nationalisation is confirmed

HBOS
2007 08 21 HBOS forced to tap balance sheet in illiquid markets
2007 12 14 HBOS shares slide on credit write-downs
2008 04 29 HBOS Plans to Raise 4 Billion Pounds in Share Sale
2008 04 30 HBOS dividend cut highlights need for reform
2008 06 19 HBOS writes off £1bn and warns on house prices
2008 07 18 Barclays and HBOS cash calls shunned
2008 07 31 HBOS Gains After First-Half Earnings Exceed Estimates
2008 09 18 Lloyds TSB seals £12.2bn HBOS deal

HSBC
2002 11 14 HSBC pays £9bn for credit card group
2007 02 08 U.S. loan problems shake HSBC
2007 02 08 HSBC's Bad Home Loans Heighten Perceived Risk of Corporate Debt
2007 02 22 HSBC announces departure of two top executives at U.S. business
2007 03 04 US triggers $11bn HSBC fall-out
2007 09 21 HSBC to Close U.S. Subprime Mortgage Unit, Cut Jobs
2007 09 25 HSBC's Closes Decision One: Just the Tip of Its Subprime Iceberg
2007 11 12 HSBC expected to write down an extra $1bn
2008 03 03 HSBC in $17bn credit crisis loss
2008 03 03 HSBC hints at asset sales as writedowns mount
2008 08 04 HSBC's profits drop as economies slows

Lloyds TSB
2007 12 10 Lloyds TSB in £200m sub-prime hit
2008 02 22 Lloyds TSB shines through credit crunch chaos
2008 05 06 Lloyds TSB bullish despite £387m writedown
2008 09 18 Lloyds TSB seals £12.2bn HBOS deal

Northern Rock
2007 09 14 Northern Rock Gets Emergency Bank of England
2007 09 15 Credit Crisis Hits Lender In Britain
2007 09 23 Ten days that shook the City
2007 10 10 Northern Rock deposits to be guaranteed by British government
2008 02 17 Northern Rock Nationalized as U.K. Rejects Virgin Bid
2008 05 13 Rock's mortgage arrears increase
2008 05 21 Northern Rock billions 'at risk in a downturn'
2008 07 30 Northern Rock unveils job losses
2008 08 06 Northern Rock losses hit almost £600m

RBS
2007 04 29 Battle of the banks
2007 12 06 RBS in £1.25bn credit crunch hit
2007 12 07 RBS says it knew risk as it reveals £1.5bn of write-offs
2008 02 28 RBS profits rise 9 per cent despite £2.5 billion writedown
2008 04 17 RBS expected to ask investors for cash
2008 04 22 RBS aims to raise $24B in new capital
2008 08 08 RBS slumps to loss after £5.9bn writedown




Canada



Bank of Montreal
2008 08 26
Housing slump hits BMO's bottom line

CIBC
2008 01 07 CIBC Ousts Two Executives Amid Write-Downs
2008 05 29 Royal Bank, National Profits Decline; CIBC Posts Loss
2008 05 30 CIBC losses hit $6.7 billion
2008 07 23 CIBC sued over subprime investments
2008 08 27 CIBC profit squeezed by $885-million credit hit
2008 10 03 CIBC gets $1-billion cash injection from Cerberus

National Bank of Canada
2008 05 29 Royal Bank, National Profits Decline; CIBC Posts Loss
2008 08 28 National Bank profit rises

RBC
2008 04 28 Royal Bank May Take C$4.2 Billion in Writedowns
2008 05 14 Royal Bank taking $855M hit on writedowns
2008 05 29 Royal Bank of Canada Profit Drops on Writedowns
2008 05 29 Royal Bank, National Profits Decline; CIBC Posts Loss
2008 08 28 U.S. operations bite into Royal Bank's profit

Scotia Bank
2008 08 26 Scotiabank earnings slip 2%

Toronto-Dominion Bank
2008 08 28 TD's profit drops, but bank hikes dividend

Germany


Allianz
2008 04 29 Allianz Quarterly Net Falls 66% After Bank Writedowns
2008 05 09 Allianz Profit Falls on EU513 Million Dresdner Loss
2008 08 06 Allianz Posts Lower Earnings, Cuts Growth Forecast

Commerzbank (incl Dresdner)
2008 02 14 Writedown clouds Commerzbank gain
2008 09 01 Commerzbank buys ailing Dresdner
2008 09 02 Price of Dresdner Deal Worries Commerzbank Investors
2008 09 03 What Now For Dresdner Kleinwort?

Deutsche Bank
2007 10 03 Less Harm Than Feared At Largest German Bank
2008 02 08 Deutsche Bank Escaped Subprime Loan Losses
2008 04 01 Deutsche Bank to write down $4B
2008 04 29 Deutsche Bank Says It Had First Loss in Five Years
2008 07 31 Deutsche writes down 2.7bn euros

Duesseldorfer Hypothekenbank
2008 04 22 Duesseldorfer Hypo Rescued by Bank Group After Crisis

Hannover Re
2008 07 25 Hannover Re Drops Most Since 2001 After Saying Goals Difficult

HSH Nordbanken
2007 08 23 HSH Has EU1.8 Billion Invested in Subprime-Related Securities
2008 02 26 HSH Nordbank Sues UBS in New York to Recoup Subprime Losses
2008 03 10 HSH Profit Declines on Subprime; Bank Postpones IPO
2008 05 20 HSH Nordbank Says Its Owners Back Plan for Capital Increase
2008 06 20 HSH First-Quarter Profit Declines 79% on Writedowns
2008 09 08 HSH to Exit Operations, Cut Jobs After Profit Slumps
2008 09 24 HSH Nordbank Posts EU500 Million in Third-Quarter Writedowns

IKB
2007 07 30 IKB Cuts Profit Forecast Amid Rout in U.S. Mortgages
2007 09 03 Sub-prime crisis to cost IKB $1bn
2007 11 27 KfW Almost Doubles Provisions on Possible IKB Losses
2008 02 17 IKB Will Ask Shareholders to Approve EU1.5 Billion Stock Sale
2008 02 18 IKB Bailout Cost Totals 8.5 Billion Euros, Handelsblatt Reports
2007 03 20 IKB Seeks Fourth Bailout After Subprime Loss Widens
2008 04 07 Head of German bank KfW resigns amid problems at IKB
2008 04 29 IKB Has $1.5 Billion First-Half Loss on Writedowns
2008 05 27 IKB Posts Nine-Month Loss; Sale Process as Planned
2008 07 03 IKB Reports 24 Million Euro Full-Year After-Tax Loss
2008 07 16 IKB's Failed Rhinebridge SIV to Sell Assets Under Goldman Plan
2008 07 22 IKB in new sub-prime write downs
2008 08 21 Lone Star Funds to take over IKB

Munich Re
2008 07 25 Munich Re Drops Most Since 2003 on Asset Writedowns
2008 08 06 Munich Re Second-Quarter Profit Falls on Writedowns

Postbank
2008 07 30 Postbank Second-Quarter Net Falls 21% on Writedowns

Sachsen Landesbank
2007 08 21 SachsenLB Has EU3 Billion in Subprime, Person Says
2007 08 28 Sub-prime stricken Sachsen probed

WestLB
2007 08 08 German Fund Stops Payouts, Citing Mortgage Market Unease
2008 01 21 WestLB expects billion euro loss
2008 04 02 Exposure to US market drops WestLB bank




France


BNP Paribas
2007 08 09
BNP Paribas Freezes Funds as Loan Losses Roil Markets
2008 08 04 BNP Paribas Dodges Bullet a Year After Freezing Funds
2008 10 05 BNP Paribas to Purchase Fortis's Units in Belgium, Luxembourg

Credit Agricole
2008 03 05 Credit Agricole hit by sub-prime
2008 05 15 Credit Agricole to sell $7.72-billion in assets
2008 05 19 Crédit Agricole boosts risk controls after writedowns hit €3.3bn
2008 08 28 Agricole, Natixis earnings plunge on market turmoil
2008 08 28 C.Agricole Q2 profit plunges on Calyon loss

Natixis
2008 08 28 Agricole, Natixis earnings plunge on market turmoil

Société Générale
2008 01 28 Scandal stings not just bank, but French pride, too
2008 04 17 Société Générale Chief to Step Aside


Foreign Banks


ANZ Bank
2008 07 28 ANZ hit by credit costs

National Australia Bank
2008 07 25 NAB rating outlook revised to negative
2007 08 25 National Australia Bank tumbles on new $830m provision
2008 09 30 NAB to take $400m hit over CDO writedowns

Fortis
2007 04 29 Battle of the banks
2008 01 28 Fortis warns of sub-prime losses
2008 06 26 Fortis launches urgent €1.5bn cash call
2008 07 11 Fortis Ousts Chief Votron After ABN Amro Deal Depletes Capital
2008 08 04 Fortis Second-Quarter Net Drops 49% After Writedowns
2008 09 29 Fortis rescued but bank woes spread
2008 10 03 Dutch part of Fortis is nationalised

ING
2008 05 14 ING's Net Falls in 'Challenging' Market
2008 05 14 ING profits down on writedowns

Credit Suisse
2007 11 01 After Write-Down, Credit Suisse's Profit Falls 31%
2007 11 14 Credit Suisse Asset Write-Down Values Holding Up
2007 11 23 In Reversal, Safe Is Risky, Risky Is Safe
2008 02 19 Credit Suisse Reveals $2.85 Bln Writedowns
2008 02 20 New $2.8 Billion Write-Down Jolts Credit Suisse
2008 04 14 Credit Suisse to face writedown of 3-5 billion Swiss francs
2008 04 24 Credit Suisse Q1 write-downs of $5.3B drives $2.1B loss
2008 06 19 UBS, Credit Suisse Face More Writedowns, Goldman Says
2008 07 06 Credit Suisse cuts cost of top team in Europe
2008 07 24 Credit Suisse Profit Falls 62%, Beating Estimates

Swiss Re
2008 08 05 Swiss Re Second-Quarter Net Falls 53% on Writedown
2008 09 25 Swiss Re Sees Further SF277 Million CDS Writedowns

UBS
2007 05 03 UBS to close its hedge fund arm
2007 10 01 Banks reveal US mortgage losses
2007 12 10 UBS posts fresh $10bn write-down
2008 01 31 In Europe, Questions Over Continuing Write-Down
2008 02 14 UBS confirms sub-prime loss woes
2008 04 01 UBS doubles sub-prime writedowns
2008 04 01 UBS writes down another $19 billion
2008 04 01 UBS Says Ospel Resigns After Writedowns Lead to Loss
2008 04 17 Crisis-hit UBS to axe 900 London bank jobs
2008 04 20 How a staid Swiss bank let ambitions lead it into folly
2008 04 30 HSH to sue UBS over subprime losses
2008 05 06 UBS to cut 5,500 jobs in subprime wake
2008 05 22 UBS prices $15.6 bln share sale at 31% discount
2008 05 22 UBS sells $22bn of securities to BlackRock
2008 05 26 UBS Falls After Saying More Mortgage Losses Possible
2008 06 09 Citigroup, Merrill, UBS Face Further Writedowns, Whitney Says
2008 06 11 Banks face 10bn monolines charges$
2008 06 19 UBS, Credit Suisse Face More Writedowns, Goldman Says
2008 07 04 UBS Says It May Avoid Loss, Doesn't Need More Capital
2008 07 05 UBS piles $7.5bn on to its write-down bill
2008 08 08 UBS is latest bank to settle auction-rate probe
2008 08 12 UBS Posts Loss on Debt Writedowns, Settlement Costs
2008 10 03 Swiss bank UBS to cut 2,000 jobs

Bank of China
2007 09 04 China reserves 'not in sub-prime'

Japan
2007 10 26 Japan's Mizuho Securities posts loss on credit woes
2007 11 23 Japan's subprime exposure hits $12bn
2008 02 13 Japan's sub-prime losses double
2008 06 01 Japan firms post Y1.9 trillion in subprime losses
2008 07 01 Subprime Losses Hit Development Bank of Japan
2008 07 31 Mizuho's Profit Advances 14% as Bad-Loan Costs Fall

A special thanks to http://www.creditwritedowns.com/2008/05/credit-crisis-timeline.html#HSBC from where this information has been received.