FEATURE STORY
Key Events from the Financial Crisis (Source: Federal Reserve Bank of St. Louis)
FEBRUARY
2007
January 11: Bank of America announces a plan to buy Countrywide Financial, a leading subprime lender, for $4 billion.
JANUARY
2008
MARCH
2008
September 7: The US Government places Fannie Mae and Freddie Mac into conservatorship.
February 27: Mortgage giant Freddie Mac says it will no longer buy the most risky subprime mortgages and mortgage-backed securities.
SEPTEMBER
2008
March 24: New York Federal Reserve Bank provides $29 billion in financing to help JPMorgan Chase purchase a struggling Bear Stearns. September 15: Lehman Brothers Holdings Inc. files for Chapter 11 bankruptcy protection and Bank of America announces plans to buy Merrill Lynch & Co. for $50 billion. September 25: The Office of Thrift Supervision closes Washington Mutual. JPMorgan Chase acquires the banking operations in a deal facilitated by the FDIC.
OCTOBER 2008
October 2008: The Treasury buys $125 billion worth of preferred stock in nine banks through Troubled Asset Relief Program (TARP). October 3: President Bush signs into law the Emergency Economic Stabilization Act, which creates the $700 billion TARP.
November 3: The Treasury Department buys $40 billion of AIG shares through TARP.
NOVEMBER
2008
DECEMBER
2008
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December 2008: The Treasury authorizes TARP loans for GM and Chrysler.