Subprime mortgage crisis/Timelines: Difference between revisions
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===2002=== | ===2002=== | ||
President sets target for | President sets target for expanding minority home-owning [http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html]. | ||
== 2003 - 2006== | == 2003 - 2006== | ||
Revision as of 07:38, 31 October 2008
The 1980s
Financial deregulation [1], [2].
Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [3]
1990 - 2003
- Progressive discount rate cuts by Federal Reserve Bank (from 7% in 1990 t0 0.75% in 2003 [4].
- Housing boom begins (8% increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime loans [5]
2002
President sets target for expanding minority home-owning [6].
2003 - 2006
- Progressive discount rate increases (from 0.75% to 6.25% in 2006).
- Housing boom continues (Average 2006 house price about 70% above 2000 level)
2007
June
25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [7].
August
6 American Home Mortgage bankrupt [8].
9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [9]
2008
January
US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [10].
March
Bear Stearns bank rescued following losses relating to mortgage-related assets by its hedge funds. [11]
April
Global subprime crisis costs could reach $1 trillion (IMF estimate) [12].
IMF forecasts US recession and world growth slowdown [13].
June
US house prices 20% below 2006 peak [14].
August
Fannie Mae and Freddie Mac rescued [15].
September
7 Fannie Mae and Freddie Mac nationalised [16].
12 Lehman Brothers bankrupt[17] with losses of up to $160 billion to holders of its unsecured bonds.