Posted by Kris | Wednesday, September 24, 2008 | , | 0 comments »

P.S I expect there will be much longer 2nd Chronology in the near future.(1-2 years from now) Too soon to call a market bottom for DJIA.

NEW YORK (Thomson Financial) - Sept 24 (Reuters) - Following charts the course of the biggest financial industry crisis since the Great Depression.

* June 2007: Two Bear Stearns hedge funds suffer after bad bets on U.S. subprime mortgage-related securities.

* July-Sept: German bank IKB becomes first in Europe to be hit by bad investments in U.S. subprime market; SachsenLB bailed out in September, also due to subprime exposure

* Sept 14: First run on a major UK bank in over a century as customers besiege mortgage bank Northern Rock (other-otc:NHRKF.PK - news people ).

* Oct 15: Citigroup (nyse: C - news -people ) posts surprise 57 percent drop in Q3 profit, hurt by $6.5 billion subprime-related write-downs and losses. CEO resigns Nov. 4.

* Dec 17: Credit crunch spreads to Australia's Centro Properties, a U.S. shopping mall owner, which issues profit warning. Its shares drop 70 percent.

* Jan 11, 2008: Bank of America (nyse: BAC - news people ) pays $4 billion for Countrywide Financial (nyse: CFC - news people ) after the mortgage lender goes bust when risky loans to shaky borrowers fail.

* Jan 30: UBS (nyse: UBS - news people ) announces $4 billion new write-downs, taking total subprime-related writedowns to $18.4 billion.

* Feb 17: Northern Rock nationalised after funding crisis.

* Feb 28: Germany's DZ Bank joins growing list of subprime casualties, posting 1.36 billion euros in write-downs.

* March 16/17: Bear Stearns sold to U.S. investment bank JP Morgan Chase (nyse: JPM - news people ) for about $2 a share.

* April 29: Deutsche Bank (nyse: DB - news people ) reports first pretax loss in five years after writing down $4.2 billion in bad loans and mortgage-backed securities.

* July 11: U.S. banking regulators seize IndyMac Bancorp (nyse:IDMC.PK - news people ) Inc as the largest independent publicly traded U.S. mortgage lender collapses after depositors withdraw more than $1.3 billion over 11 days.

* July 13: U.S. Treasury and Federal Reserve effectively nationalise mortgage finance companies Fannie Mae (nyse: FNM - news people ) and Freddie Mac (nyse: FRE - news people ) in a bid to support U.S. housing market.

* July 31: Deutsche Bank announces another $3.6 billion writedowns, taking its bill from the financial crisis beyond $11 billion and putting it among the top 10 global casualties.

* Sept 15: Wall Street's worst day since markets reopened after the September 2001 attacks; Lehman Brothers (nyse: LEH - news -people ) in largest U.S. bankruptcy; Merrill Lynch (nyse: MER - news -people ) taken over by Bank of America Corp; American International Group (nyse: AIG - news people ), once the world's top insurer, scrambles for capital because of losses on its mortgage-related debt.

* Sept 16: Central banks pump billions of dollars into money markets in a bid to ease tensions and prevent global financial system from freezing: AIG shares almost halve. Fed announces plan for $85 billion AIG rescue loan in return for 80 percent stake; Britain's Barclays (nyse: BCS -news people ) buys parts of Lehman's North American assets for $1.75 billion.

* Sept 17: Shares in Goldman Sachs (nyse: GS - news people ) andMorgan Stanley (nyse: MS - news people ) fall sharply; Britain'sLloyds TSB (nyse: LYG - news people ) buys rival HBOS; U.S. Securities and Exchange Commission (SEC) curbs short-selling.

* Sept 19: World stock markets soar on U.S. plans to buy up so-called toxic assets, helping cleanse the financial system.

* Sept 20-21: Details emerge of U.S. plan for $700 billion bailout for firms burdened by bad mortgage debt; Goldman Sachs, Morgan Stanley transformed into bank holding companies, ending Wall Street's investment banking model.

* Sept 22: Japan's Nomura Holdings buys Lehman's Asia operations for up to $525 million. Later, Nomura buys Lehman's Europe and Middle East operationsMitsubishi (other-otc: MSBHY.PK - news people ) UFJ Financial agrees to buy up to 20 percent of Morgan Stanley.

* Sept 23: Warren Buffett pays $5 billion for up to 9 percent of Goldman Sachs; FBI probes Fannie, Freddie, AIG and Lehman for potential mortgage fraud, according to CNN.

(Compiled by Asiadesk and Gillian Murdoch, Beijing Editorial ReferenceUnit (nyse: UNT - news people ); Editing by Ian Geoghegan) Keywords: FINANCIAL/CHRONOLOGY