Subprime mortgage crisis/Timelines
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]
2003 - 2006
- Progressive discount rate increases (from 0.75% to 6.25% in 2006).
- Housing boom continues (Average 2006 house price about 70% above 200 level)
2007
June
25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [6].
August
6 American Home Mortgage bankrupt [7].
9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [8]
2008
January
US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [9].
March
Bear Stearns bank rescued [10]
April
Global subprime crisis costs could reach $1 trillion (IMF estimate) [11].
IMF forecasts US recession and world growth slowdown [12].
June
US house prices 20% below 2006 peak [13].
August
Fannie Mae and Freddie Mac rescued [14].
September
7 Fannie Mae and Freddie Mac nationalised [15].
12 Lehman Brothers bankrupt[16] with losses of up to $160 billion to holders of its unsecured bonds.