2006 - US housing market slows after two years of interest rate rises. Defaults on subprime loans-high risk mortgage lending-increaseFeb 2007 - HSBC sets aside funds to cover bad debts in US subprime loans
June - US investment bank Bear Stearns reveals two of its hedge funds-once worth US1.4 bil -now worthless due to subprime-back securities
July - German industrial bank IKB announces US subprime-related losses
Aug - Federal Reserve, European Central Bank pump funds into markets as interbank lending dries up. Germany's Bundesbank announces rescue plan for IKB. Fed cuts discount rate by half point-stock markets surge. Britain's Barclays Bank borrows 1.9 bil pounds from Bank of England emergency funds
Sept - Britain's fifth largest mortgage lender, Northern Rock, struggles to raise funds from lenders -Bank of England injects US55 bil, British government forced to guarantee deposits after run on bank by worried savers
Oct - Swiss bank UBS writes down US3.4 bil, Citigroup announces US6.5 bil loss, Merrill Lynch records US8.4 bil loss
Nov - Citigroup writedown increases to US11 bil. Fed pumps US47.25 bil into the banking system - biggest injection of funds since September 11 attacks. Dollar sinks to record low against euro, 26 year low against sterling
Dec - Central banks, including Fed and ECB, injects US40 bil into money markets. Bear Stearns takes US1.9 bil writedown
Jan 2008 - President Bush unveils US150 bil stimulus plan. French bank Societe General losses US7.2 bil in fraudulent trading
March - Bear Stearns, overwhelmed by spike in demand from lenders, bailed out by Fed and JP Morgan Chase. JP Morgan buys Bear Stearns for just US2 per share -US236 mil
Source: Graphic News
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