Financial Crisis Timeline

November 05, 2009

Fri, 06 Nov 2009 09:45:00 CST

Fannie Mae reports a net loss of $18.9 billion in the third quarter of 2009, compared with a loss of $14.8 billion in the second quarter of 2009. The loss resulted in a net worth deficit of $15.0 billion as of September 30,2009. The Acting Director of the Federal Housing Finance Agency submitted a request for $15.0 billion from the U.S. Treasury to cover the deficit. Fannie Mae has lost a total of $111 billion since September, 2008, when the firm was placed under government conservatorship.

November 01, 2009

Mon, 02 Nov 2009 14:42:50 CST

CIT Group, Inc., files for bankruptcy protection under Chapter 11 of the bankruptcy code. The U.S. Government purchased $2.3 billion of CIT preferred stock in December 2008 under the Troubled Asset Relief Program (TARP). The firm's prepackaged bankruptcy is expected to wipe out the equity stakes of CIT's current shareholders, including the U.S. Government.

October 22, 2009

Fri, 23 Oct 2009 10:39:11 CST

The Special Master for TARP Executive Compensation releases determinations on the compensation packages for the top 25 most highly paid executives at the seven firms that received exceptional TARP assistance (AIG, Citigroup, Bank of America, Chrysler, Chrysler Financial, GM, and GMAC).

October 22, 2009

Fri, 23 Oct 2009 10:39:46 CST

The Federal Reserve Board issues a proposal designed to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of their organizations. The proposal includes two supervisory initiatives. One, applicable to 28 large, complex banking organizations, will review each firm's policies and practices to determine their consistency with the principles for risk-appropriate incentive compensation set forth in the proposal. Second, supervisors will review compensation practices at regional, community, and other banking organizations not classified as large and complex as part of the regular, risk-focused examination process.

October 21, 2009

Thu, 22 Oct 2009 11:24:18 CST

The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.

October 14, 2009

Wed, 14 Oct 2009 15:56:40 CST

The Dow Jones Industrial Average closes above 10,000 for the first time since October 3, 2008.

September 29, 2009

Wed, 30 Sep 2009 10:13:45 CST

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) adopts a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion. The FDIC Board also votes to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years.

September 18, 2009

Fri, 18 Sep 2009 11:45:01 CST

The U.S. Department of the Treasury announces the expiration of the Guarantee Program for Money Market Funds, which was implemented in the wake of the failure of Lehman Brothers in September 2008. The Program was initially established for a three-month period that could be extended up through September 18, 2009. Since its inception, the Treasury had no losses under the Program and earned approximately $1.2 billion in participation fees.

September 16, 2009

Thu, 17 Sep 2009 07:37:42 CST

The Federal Deposit Insurance Corporation (FDIC) announces the signing of a bid confirmation letter with Residential Credit Solutions in a pilot sale of receivership assets under the Legacy Loans Program of the Public-Private Investment Program. The Public-Private Investment Program is being developed to help banks remove troubled assets from their balance sheets. The pilot sale was conducted to test the funding mechanism for the Legacy Loans Program.

September 14, 2009

Mon, 14 Sep 2009 12:39:25 CST

The U.S. Treasury releases the report "The Next Phase of Government Financial Stabilization and Rehabilitation Policies." This report focuses on winding down those programs that were once deemed necessary to prevent systemic failure in the financial markets and the broader economy.

September 09, 2009

Wed, 09 Sep 2009 09:54:25 CST

The FDIC Board adopts a Notice of Proposed Rulemaking (NPR) that reaffirms the expiration of the debt guarantee component of the Temporary Liquidity Guarantee Program (TLGP) on October 31st, 2009. Under the NPR, the Federal Deposit Insurance Corporation will seek comment on whether a temporary emergency facility should be left in place for six months after the expiration of the current program. There are two alternatives contemplated under the NPR. Under Alternative A, the DGP would expire as provided for by the FDIC's existing regulation on October 31st, 2009 with FDIC's guarantee for such debt expiring no later than December 31, 2012. Under Alternative B, the Debt Guarantee Program will expire as provided for in the current regulation, however, the FDIC would establish a six-month emergency guarantee facility to be made available in emergency circumstances to insured depository institutions (IDSs) and certain other entities participating in the DGP upon application to the FDIC and with the approval of the Chairman, after consultation with the Board.

August 28, 2009

Mon, 31 Aug 2009 11:59:06 CST

The Federal Reserve announces that the amounts of Term Auction Facility (TAF) credit offered at each of the two auctions in September will be reduced to $75 billion from $100 billion in August. This follows on a reduction from $125 billion in July. The reduction is consistent with expectations that the TAF auction amounts will continue to decrease as market conditions improve.

August 27, 2009

Fri, 28 Aug 2009 13:47:53 CST

The FDIC announces that the number of "problem banks" increased from 305 insured institutions
with $220 billion in assets at the end of first quarter of 2009, to 416 institutions with $299.8 billion of
assets at the end of the second quarter of 2009.

August 25, 2009

Wed, 26 Aug 2009 12:38:48 CST

President Obama nominates Ben S. Bernanke for a second term as Chairman of the Board of Governors of the Federal Reserve System.

August 17, 2009

Mon, 17 Aug 2009 09:22:06 CST

The Federal Reserve Board and the Treasury Department announce an extension to the Term Asset-Backed Securities Loan Facility (TALF). Eligible loans against newly issued asset-backed securities (ABS) and legacy commercial mortgage-backed securities (CMBS) can now be made through March 31, 2010. Because new CMBS deals can take a significant amount of time to arrange, TALF lending against newly issued CMBS was approved through June 30, 2010. The previously-announced deadline for TALF loans was December 31, 2009. The Federal Reserve and the Treasury said they do not anticipate any further additions to the types of collateral that are eligible for the TALF.

August 06, 2009

Tue, 18 Aug 2009 09:48:10 CST

Fannie Mae reports a loss of $14.8 billion in the second quarter of 2009. The Director of the Federal Housing Finance Agency, which has been acting as Fannie Mae's conservator since September 6, 2008, requests $10.7 billion from the U.S. Treasury Department under the terms of the senior preferred stock purchase agreement between Fannie Mae and the Treasury in order to eliminate the firm's net worth deficit. Under the agreement, the Treasury will have provided $45.9 billion of capital to Fannie Mae to cover net worth deficits through the second quarter of 2009.

July 26, 2009

Tue, 28 Jul 2009 09:01:19 CST

Citigroup announces the preliminary results of its offers to exchange its publicly held convertible and non-convertible preferred and trust preferred securities for newly issued shares of its common stock. Citigroup also announces that it expects to complete a further exchange with the U.S. Government of $12.5 billion in aggregate liquidation preference of Citigroup preferred stock, and that in aggregate, approximately $58 billion in aggregate liquidation value of preferred and trust preferred securities will have been exchanged to common stock as a result of the completion of all the exchange offers.

July 24, 2009

Fri, 24 Jul 2009 10:29:16 CST

The Federal Reserve announces that the amounts of Term Auction Facility (TAF) credit offered at each of the two auctions in August will be reduced to $100 billion from $125 billion in July. The reduction is consistent with the expectation that TAF auction amounts would be reduced gradually further in coming months if market conditions continue to improve.

July 23, 2009

Tue, 28 Jul 2009 09:00:35 CST

Citigroup announces that it completed a previously announced exchange offer with private investors of convertible preferred securities and a previously announced matching exchange offer with the U.S. Government. Citigroup exchanged $12.5 billion in aggregate liquidation value of convertible preferred securities held by private holders for interim securities and warrants, and made a similar exchange of $12.5 billion in aggregate liquidation value of convertible preferred securities held by the U.S. Government for interim securities and warrants. The interim securities will convert to common stock, subject to shareholder authorization of the increase in Citigroup's authorized common stock.

July 23, 2009

Fri, 24 Jul 2009 10:28:21 CST

The Federal Reserve Board proposes significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit. Among other changes, the Board's proposal would improve the disclosure of the annual percentage rate on closed-end mortgages and require lenders to show consumers how much their monthly payments might increase for adjustable-rate mortgages. The proposal would also prohibit payments to a mortgage broker or loan officer that are based on a loan's interest rate or other terms, and prohibit lenders from steering consumers to transactions that are not in their interest in order to increase the lender's compensation.

July 21, 2009

Thu, 22 Oct 2009 11:25:41 CST

The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.

July 21, 2009

Tue, 21 Jul 2009 12:39:17 CST

Chairman Ben Bernanke presents the second of the Federal Reserve's semi-annual Monetary Policy Report to the Congress. Chairman Bernanke testifies that "the extreme risk aversion of last fall has eased somewhat, and investors are returning to private credit markets."

July 15, 2009

Mon, 03 Aug 2009 10:21:17 CST

Congress announces the appointment of members to the Financial Crisis Inquiry Commission. The Commission was established by the Fraud Enforcement and Recovery Act of 2009 (Public Law 111-21), which was enacted on May 20, 2009. The Commission is required to report its findings on the causes of the financial crisis to Congress by December 15, 2010.

July 10, 2009

Mon, 13 Jul 2009 15:36:12 CST

The Congressional Oversight Panel for the Troubled Asset Relief Program releases its July report, which examines several issues raised by the repayment of TARP funds by institutions that have received TARP assistance.

July 08, 2009

Thu, 09 Jul 2009 10:28:30 CST

The U.S. Treasury Department, Federal Reserve and the FDIC announce the details of the Legacy Securities Public-Private Investment Program (PPIP). Under this program, the U.S. Treasury will invest up to $30 billion with private sector fund managers and private investors for the purpose of purchasing legacy securities. The Legacy Securities PPIP will participate in the market for commercial mortgage-backed securities and non-agency residential mortgage-backed securities. To qualify for purchase, these securities must have been issued prior to 2009 and have originally been rated AAA (or an equivalent rating by two or more nationally recognized statistical rating organizations) without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets ("Eligible Assets"). The U.S. Treasury pre-qualified nine firms to participate as fund managers. The fund managers will be required to raise at least $500 million of capital from private investors; the equity capital will be matched by U.S. Treasury. In addition, the fund manager must also invest a minimum of $20 million of firm capital. Upon raising this private capital the fund managers can begin purchasing Eligible Assets.

June 30, 2009

Fri, 03 Jul 2009 07:36:47 CST

The U.S. Treasury proposes a bill to Congress that would create a new Consumer Financial Protection Agency. The bill would transfer all current consumer protection functions of the Federal Reserve System, Comptroller of the Currency, Office of Thrift Supervision, FDIC, FTC, and the National Credit Union Administration to the new agency. In addition, Treasury proposes amendments to the Federal Trade Commission Act with regards to coordination with the proposed Consumer Financial Protection Agency.

June 26, 2009

Fri, 03 Jul 2009 07:37:02 CST

The U.S. Treasury announces its policy regarding the disposition of warrants acquired under the Capital Purchase Program. For publicly traded companies, the Treasury received warrants to purchase common shares of stock; these warrants have not been exercised. The Treasury's policy allows banks to repurchase warrants following a multi-step process to determine fair market value.

June 25, 2009

Mon, 29 Jun 2009 11:13:13 CST

American International Group (AIG) announces that it has entered into an agreement with the Federal Reserve Bank of New York to reduce the debt AIG owes the Federal Reserve Bank of New York by $25 billion. The Federal Reserve Bank of New York will receive preferred interests of $16 billion and $9 billion, respectively, in two new special purpose vehicles holding the equity of AIG subsidiaries American International Assurance Company and American Life Insurance Company.

June 24, 2009

Mon, 06 Jul 2009 11:11:20 CST

The Securities and Exchange Commission proposes rule amendments designed to strengthen the regulatory framework for money market funds. The proposed rules are intended to reduce the risk in money market funds by introducing liquidity requirements, shortening the average maturity limits, and increasing the requirements for credit quality. In addition, the proposals would require the monthly reporting of portfolio holdings and will allow suspension of redemptions if a fund "breaks the buck."

June 24, 2009

Thu, 25 Jun 2009 13:15:38 CST

The Federal Reserve announces extensions of and modifications to a number of its liquidity programs. The expiration date of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility (CPFF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF) is extended through February 1, 2010. The expiration date of the Term Asset-Backed Securities Loan Facility (TALF) remains set at December 31, 2009. In addition, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to February 1, 2010. The Federal Reserve also announces that the amounts auctioned at the biweekly auctions of Term Auction Facility (TAF) funds will be reduced from $150 billion to $125 billion, effective with the auction to be held on July 13, 2009.

June 19, 2009

Fri, 26 Jun 2009 15:37:11 CST

The U.S. Treasury purchases a total of $84.7 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.

June 17, 2009

Fri, 03 Jul 2009 07:37:20 CST

The U.S. Treasury Department releases a proposal for reforming the financial regulatory system. The proposal calls for the creation of a Financial Services Oversight Council and for new authority for the Federal Reserve to supervise all firms that pose a threat to financial stability, including firms that do not own a bank.

June 12, 2009

Fri, 26 Jun 2009 15:34:23 CST

The U.S. Treasury purchases a total of $39 million in preferred stock from 7 U.S. Banks under the Capital Purchase Program.

June 12, 2009

Wed, 17 Jun 2009 14:14:13 CST

The Federal Reserve announces that it is reviewing regulatory capital requirements for banking organizations in response to a decision by the Financial Accounting Standards Board to address weaknesses in accounting and disclosure standards for off-balance sheet vehicles.

June 10, 2009

Wed, 10 Jun 2009 13:44:30 CST

The Federal Reserve issues the first of an ongoing series of monthly reports on its credit and lending facilities. The report provides information on borrowing patterns and collateral for many of the Federal Reserve's credit and liquidity programs, including the number of borrowers and borrowing amounts by type of institution, collateral by type and credit rating, and data on the concentration of borrowing. The report also includes information on liquidity swap usage by country, quarterly income for important classes of Federal Reserve assets, and asset distribution and other information on the limited liability companies created to avert the disorderly failures of Bear Stearns and American International Group (AIG).

June 09, 2009

Fri, 03 Jul 2009 07:37:39 CST

The U.S. Treasury Department announces that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program have met the requirements for repayment established by the primary federal banking supervisors. If these firms choose to repay the capital acquired through the program, the Treasury will receive up to $68 billion in repayment proceeds.

June 05, 2009

Fri, 26 Jun 2009 15:30:56 CST

The U.S. Treasury purchases a total of $40 million in preferred stock from 3 U.S. bank under the Capital Purchase Program.

June 03, 2009

Thu, 04 Jun 2009 11:12:48 CST

The FDIC announces that the previously planned sale of impaired bank assets under the Legacy Loans Program (LLP) will be postponed. According to Chairman Bair: "Banks have been able to raise capital without having to sell bad assets through the LLP, which reflects renewed investor confidence in our banking system."

June 01, 2009

Mon, 01 Jun 2009 09:59:38 CST

As part of a new restructuring agreement with the U.S. Treasury and the governments of Canada and Ontario, General Motors Corporation and three domestic subsidiaries announce that they have filed for relief under Chapter 11 of the U.S. Bankruptcy Code.

June 01, 2009

Tue, 02 Jun 2009 09:35:28 CST

The Federal Reserve Board announces the criteria it will use to evaluate redemption applications from the 19 bank holding companies that received U.S. Treasury capital as part of the Supervisory Capital Assessment Program. An initial set of redemption approvals are expected to be announced during the week of June 8.

May 29, 2009

Fri, 26 Jun 2009 15:25:35 CST

The U.S. Treasury purchases a total of $89 million in preferred stock from 8 U.S. banks under the Capital Purchase Program.

May 27, 2009

Wed, 27 May 2009 10:10:12 CST

The FDIC announces that the number of "problem banks" increased from 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008, to 305 institutions with $220 billion of assets at the end of the first quarter of 2009. The FDIC also announces that there were 21 bank failures in the first quarter of 2009, which is the largest number of failed institutions in a quarter since the first quarter of 1992.

May 22, 2009

Fri, 22 May 2009 14:16:26 CST

The Federal Reserve Board announces the adoption of a final rule that will allow bank holding companies to include in their Tier 1 capital without restriction senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP).

May 22, 2009

Fri, 26 Jun 2009 15:21:52 CST

The U.S. Treasury purchases a total of $108 million in preferred stock from 12 U.S. banks under the Capital Purchase Program.

May 21, 2009

Fri, 22 May 2009 09:57:29 CST

The Federal Deposit Insurance Corporation (FDIC) announces the approval of GMAC Financial Services to participate in the Temporary Liquidity Guarantee Program (TLGP). GMAC will be allowed to issue up to $7.4 billion in new FDIC-guaranteed debt.

May 21, 2009

Thu, 21 May 2009 15:36:28 CST

Standard and Poor's Ratings Services lowers its outlook on the United Kingdom government debt from stable to negative because of the estimated fiscal cost of supporting the nation's banking system. S&P estimates that this cost could double the government's debt burden to about 100 percent of GDP by 2013.

May 20, 2009

Fri, 22 May 2009 10:02:05 CST

President Obama signs the Helping Families Save Their Homes Act of 2009, which temporarily raises FDIC deposit insurance coverage from $100,000 per depositor to $250,000 per depositor. The new coverage at FDIC-insured institutions will expire on January 1, 2014, when the amount will return to its standard level of $100,000 per depositor for all account categories except IRAs and other certain retirement accounts. This action supersedes the October 3, 2008 changes.

May 19, 2009

Tue, 19 May 2009 15:12:47 CST

The Federal Reserve Board announces that, starting in July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 ("legacy CMBS") will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF). The objective of the expansion is to restart the market for legacy securities and, by doing so, stimulate the extension of new credit by helping to ease balance sheet pressures on banks and other financial institutions. Eligible CMBS must have a triple-A rating from at least two major rating services.

May 15, 2009

Fri, 22 May 2009 10:08:31 CST

The U.S. Treasury purchases a total of $107.6 million in preferred stock from 14 U.S. banks under the Capital Purchase Program.

May 13, 2009

Fri, 03 Jul 2009 07:38:04 CST

The U.S. Treasury Department proposes amendments to the Commodity Exchange Act and securities laws to enhance government regulation of over-the-counter (OTC) derivatives markets. The proposed changes include requirements that all standardized OTC derivatives be cleared through regulated central counterparties, and that all OTC derivatives dealers and all other firms whose activities in those markets create large exposures to counterparties be subject to prudential supervision and regulation. In addition, the U.S. Treasury Department proposes new recordkeeping and reporting requirements on all OTC derivatives, and increased authority for the Commodity Futures Trading Commission to regulate OTC derivatives trading.

May 12, 2009

Wed, 13 May 2009 14:39:36 CST

Freddie Mac reports a first quarter 2009 loss of $9.9 billion, and a net worth deficit of $6.0 billion as of March 31, 2009. The Director of the Federal Housing Finance Agency (FHFA) submits a request to the U.S. Treasury .Department for funding in the amount of $6.1 billion in his capacity as conservator of Freddie Mac. Further, on May 6, 2009, the Treasury Department and FHFA, acting on Freddie Mac's behalf as its conservator, entered into an amendment to the Purchase Agreement between the company and Treasury that increases the Treasury's funding commitment to the firm to $200 billion from $100 billion, increases the allowed size of Freddie Mac's mortgage-related investments portfolio by $50 billion to $900 billion, and increases the firm's allowable debt outstanding to $1,080 billion until December 31, 2010.

May 08, 2009

Wed, 13 May 2009 09:07:36 CST

The U.S. Treasury purchases a total of $42 million in preferred stock from 7 U.S. banks under the Capital Purchase Program.

May 08, 2009

Fri, 08 May 2009 10:36:55 CST

Fannie Mae reports a loss of $23.2 billion for the first quarter of 2009. The Director of the Federal Housing Finance Agency (FHFA), which has been conservator of Fannie Mae since September 6, 2008, requests $19 billion from the U.S. Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement between Fannie Mae and the Treasury to eliminate the firm's net worth deficit. Separately, on May 6, 2009, the Treasury Department and the FHFA enter into an amendment to the Senior Preferred Stock Purchase Agreement to increase the Treasury's funding commitment to Fannie Mae to $200 billion from $100 billion, increase the allowed size of Fannie Mae's mortgage portfolio to $900 billion, and to increase the firm's allowable debt outstanding to $1,080 billion.

May 07, 2009

Fri, 08 May 2009 11:00:21 CST

The Federal Reserve releases the results of the Supervisory Capital Assessment Program ("stress test") of the 19 largest U.S. bank holding companies. The assessment finds that the 19 firms could lose $600 billion during 2009 and 2010 if the economy were to track the more adverse scenario considered in the program. The assessment also finds that 9 of the 19 firms already have adequate capital to maintain Tier 1 capital in excess of 6 percent of total assets and common equity capital in excess of 4 percent under the more adverse scenario. Ten firms would need to add $185 billion to their capital to maintain adequate buffers under the more adverse scenario. However, transactions and revenues since the end of 2008 have reduced to $75 billion the additional capital that these firms must raise in order to establish the capital buffer required under the program. A bank holding company needing to augment its capital buffers will be required to develop a detailed plan to be approved by its primary supervisor within 30 days and to implement its plan to raise additional capital by early November 2009.

May 01, 2009

Mon, 04 May 2009 08:44:33 CST

The Federal Reserve Board announces that, starting in June, commercial mortgage-backed securities (CMBS) and securities backed by insurance premium finance loans will be eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF). The Board also authorizes TALF loans with maturities of five years. Currently, all TALF loans have maturities of three years. TALF loans with five-year maturities will be available for the June funding to finance purchases of CMBS, ABS backed by student loans, and ABS backed by loans guaranteed by the Small Business Administration.

May 01, 2009

Wed, 13 May 2009 09:06:54 CST

The U.S. Treasury purchases a total of $45.5 million in preferred stock from 7 U.S. banks under the Capital Purchase Program.

April 24, 2009

Fri, 24 Apr 2009 14:12:40 CST

The Federal Reserve Board publishes a white paper describing the process and methodologies employed by federal banking supervisory authorities in their forward looking assessment ("stress test") of large U.S. bank holding companies.

April 24, 2009

Wed, 29 Apr 2009 15:33:18 CST

The U.S. Treasury purchases a total of $121.8 million in preferred stock from 12 U.S. banks under the Capital Purchase Program.

April 23, 2009

Thu, 23 Apr 2009 16:39:07 CST

The Federal Reserve publishes the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies that were created in 2008 to respond to strains in the financial markets, and the Board of Governors for the years ended December 31, 2008 and 2007.

April 21, 2009

Thu, 22 Oct 2009 11:26:32 CST

The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.

April 17, 2009

Thu, 23 Apr 2009 11:49:44 CST

The U.S. Treasury purchases a total of $40.9 million in preferred stock from 6 U.S. banks under the Capital Purchase Program.

April 10, 2009

Thu, 23 Apr 2009 11:48:34 CST

The U.S. Treasury purchases a total of $22.8 million in preferred stock from 5 U.S. banks under the Capital Purchase Program.

April 09, 2009

Thu, 23 Apr 2009 11:34:13 CST

The Financial Accounting Standards Board issues three final Staff Positions intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities.

April 07, 2009

Wed, 08 Apr 2009 13:34:54 CST

The Congressional Oversight Panel releases its monthly report on the Troubled Asset Relief Program (TARP). This report, entitled "Assessing Treasury's Strategy: Six Months of TARP," provides information about expenditures and commitments to date of TARP funds, evaluates the Treasury Department's strategy for improving the condition and functioning of financial institutions and markets, and discusses potential policy alternatives.

April 06, 2009

Mon, 06 Apr 2009 11:08:23 CST

The Federal Reserve announces new reciprocal currency agreements (swap lines) with the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank that would enable the provision of foreign currency liquidity by the Federal Reserve to U.S. financial institutions.

April 03, 2009

Wed, 08 Apr 2009 13:53:56 CST

The U.S. Treasury purchases a total of $54.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.

April 02, 2009

Thu, 23 Apr 2009 11:32:45 CST

The Financial Accounting Standards Board approves new guidance to ease the accounting of troubled assets held by banks and other financial companies. In particular, the Board provides new guidance on how to determine the fair value of assets for which there is no active market.

April 01, 2009

Wed, 08 Apr 2009 13:47:14 CST

Federal Reserve Chairman Bernanke and Federal Reserve Bank of New York President Dudley respond to questions from the Congressional Oversight Panel about the Term Asset-Backed Loan Facility (TALF), explaining in detail the rationale and operation of the TALF.

March 31, 2009

Wed, 01 Apr 2009 10:51:46 CST

Four bank holding companies announced that they had redeemed all of the preferred shares that they had issued to the U.S. Treasury under the Capital Purchase Program of the Troubled Asset Relief Program (TARP). The four banks are Bank of Marin Bancorp (Novato, CA), Iberiabank Corporation (Lafayette, LA), Old National Bancorp (Evansville, IN), and Signature Bank (New York, NY).

March 31, 2009

Wed, 01 Apr 2009 11:48:39 CST

The General Accounting Office (GAO) releases a report on the status of efforts to address transparency and accountability issues for the Troubled Asset Relief Program (TARP). The report provides information about the nature and purpose of TARP funding through March 27, 2009, the performance of the Treasury Department's Office of Financial Stability, and TARP performance indicators.

March 31, 2009

Thu, 02 Apr 2009 10:34:37 CST

The U.S. Treasury Department announces an extension of its temporary Money Market Funds Guarantee Program through September 18, 2009. This program will continue to provide coverage to shareholders up to the amount held in participating money market funds as of the close of business on September 19, 2008. The Program currently covers over $3 trillion of combined fund assets and was scheduled to end on April 30, 2009.

March 27, 2009

Wed, 01 Apr 2009 11:31:09 CST

The U.S. Treasury Department purchases a total of $193 million in preferred stock from 14 U.S. banks under the Capital Purchase Program.

March 26, 2009

Fri, 03 Jul 2009 07:38:30 CST

The U.S. Treasury Department outlines a framework for comprehensive regulatory reform that focuses on containing systemic risks in the financial system. The framework calls for assigning responsibility over all systemically-important firms and critical payment and settlement systems to a single independent regulator. Further, it calls for higher standards on capital and risk management for systemically-important firms; for requiring all hedge funds above a certain size to register with a financial regulator; for a comprehensive framework of oversight, protection and disclosure for the over-the-counter derivatives market; for new requirements for money market funds; and for stronger resolution authority covering all financial institutions that pose systemic risks to the economy.

March 25, 2009

Fri, 03 Jul 2009 07:38:47 CST

The U.S. Treasury Department proposes legislation that would grant the U.S. government authority to put certain financial institutions into conservatorship or receivership to avert systemic risks posed by the potential insolvency of a significant financial firm. The authority is modeled on the resolution authority that the FDIC has with respect to banks and that the Federal Housing Finance Agency has with regard to the GSEs. The authority would apply to non-bank financial institutions that have the potential to pose systemic risks to the economy but that are not currently subject to the resolution authority of the FDIC or the Federal Housing Finance Agency.

March 23, 2009

Tue, 24 Mar 2009 09:03:36 CST

The Federal Reserve and the U.S. Treasury issue a joint statement on the appropriate roles of each during the current financial crisis and into the future, and on the steps necessary to ensure financial and monetary stability. The four points of agreement are 1) The Treasury and the Federal Reserve will continue to cooperate in improving the functioning of credit markets and fostering financial stability; 2) The Federal Reserve should avoid credit risk and credit allocation, which are the province of fiscal authorities; 3) The need to preserve monetary stability, and that actions by the Federal Reserve in the pursuit of financial stability must not constrain the exercise of monetary policy as needed to foster maximum sustainable employment and price stability; and 4) The need for a comprehensive resolution regime for systemically critical financial institutions. In addition, the Treasury will seek to remove the Maiden Lane facilities from the Federal Reserve's balance sheet.

March 23, 2009

Fri, 03 Jul 2009 07:39:23 CST

The U.S. Treasury Department announces details on the Public-Private Investment Program for Legacy Assets. The program will have two parts: a Legacy Loans Program and a Legacy Securities Program. The Legacy Loans Program will facilitate the creation of individual Public-Private Investment Funds which will purchase distressed loans that are currently held by banks. The U.S. Treasury intends to provide 50 percent of the equity capital for each fund. The FDIC will provide oversight for the formation, funding, and operation of these funds, and guarantee the debt issued by the funds. Under the Legacy Securities Program, the U.S. Treasury Department will approve up to five asset managers who will have the opportunity to raise private capital to acquire distressed securities currently held by banks. The U.S. Treasury will provide 50 percent of the equity capital for each investment fund and will consider requests for loans to each fund. In addition, the investment funds would also be eligible for non-recourse loans from the Term Asset-Backed Securities Facility (TALF).

March 20, 2009

Fri, 27 Mar 2009 14:22:47 CST

The U.S. Treasury Department purchases a total of $80.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.

March 19, 2009

Thu, 19 Mar 2009 11:19:44 CST

The U.S. Department of the Treasury announces an Auto Supplier Support Program that will provide up to $5 billion in financing to the automotive industry. The Supplier Support Program will provide selected suppliers with financial protection on monies ("receivables") they are owed by domestic auto companies and the opportunity to access immediate liquidity against those obligations. Receivables created with respect to goods shipped after March 19, 2009, will be eligible for the program. Any domestic auto company is eligible to participate in the program. Any U.S.-based supplier that ships to a participating auto manufacturer on qualifying commercial terms may be eligible to participate in the program.

March 19, 2009

Fri, 20 Mar 2009 10:03:07 CST

The Federal Reserve Board announces an expansion of the eligible collateral for loans extended by the Term Asset-Backed Securities Loan Facility (TALF) to include asset-backed securities backed by mortgage servicing advances, loans or leases related to business equipment, leases of vehicle fleets, and floorplan loans. The new categories of collateral will be eligible for the April TALF funding.

March 19, 2009

Fri, 20 Mar 2009 10:25:44 CST

The Federal Reserve Bank of New York releases the initial results of the first round of loan requests for funding from the Term Asset-Backed Securities Loan Facility (TALF). The amount of TALF loans requested at the March 17-19 operation was $4.7 billion.

March 19, 2009

Fri, 20 Mar 2009 10:27:03 CST

The FDIC completes the sale of IndyMac Federal Bank to OneWest Bank. OneWest will assume all deposits of IndyMac, and the 33 branches of IndyMac will reopen as branches of OneWest on March 20. As of January 31, 2009, IndyMac had total assests of $23.5 billion and total deposits of $6.4 billion. IndyMac reported fourth quarter 2008 losses of $2.6 billion, and the total estimated loss to the Deposit Insurance Fund of the FDIC is $10.7 billion. The FDIC had been named conservator of IndyMac FSB on July 11, 2008.

March 18, 2009

Wed, 18 Mar 2009 15:19:31 CST

The FOMC votes to maintain the target range for the effective federal funds at 0 to 0.25 percent. In addition, the FOMC decides to increase the size of the Federal Reserve's balance sheet by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. The FOMC also decides to purchase up to $300 billion of longer-term Treasury securities over the next six months to help improve conditions in private credit markets. Finally, the FOMC announces that it anticipates expanding the range of eligible collateral for the TALF (Term Asset-Backed Securities Loan Facility).

March 18, 2009

Thu, 19 Mar 2009 08:58:20 CST

The Federal Reserve Bank of New York releases more information on the Federal Reserve's plan to purchase Treasury securities. The Desk will concentrate its purchases in nominal maturities ranging from 2 to 10 years. The purchases will be conducted with the Federal Reserve's primary dealers through a series of competitive auctions and will occur two to three times a week. The Desk plans to hold the first purchase operation late next week.

March 17, 2009

Wed, 18 Mar 2009 12:59:21 CST

The Federal Deposit Insurance Corporation (FDIC) decides to extend the debt guarantee portion of the Temporary Liquidity Guarantee Program (TLGP) from June 30, 2009 through October 31, 2009, and to impose a surcharge on debt issued with a maturity of one-year or more beginning in the second quarter of 2009 to gradually phase-out the program.

March 13, 2009

Mon, 23 Mar 2009 14:16:50 CST

The U.S. Treasury Department purchases a total of $1.45 billion in preferred stock from 19 U.S. banks under the Capital Purchase Program.

March 11, 2009

Thu, 12 Mar 2009 09:17:19 CST

The Federal Reserve Board releases the minutes of its meetings from July 13, 2008 through December 16, 2008 concerning Federal Reserve liquidity facilities and other issues related to the financial turmoil.

March 11, 2009

Thu, 12 Mar 2009 09:20:54 CST

Freddie Mac announces that it had a net loss of $23.9 billion in the fourth quarter of 2008, and a net loss of $50.1 billion for 2008 as a whole. Further, Freddie Mac announces that its conservator has submitted a request to the U.S. Treasury Department for an additional $30.8 billion in funding for the company under the Senior Preferred Stock Purchase Agreement with the Treasury.

March 06, 2009

Mon, 16 Mar 2009 09:10:20 CST

The U.S. Treasury Department purchases a total of $284.7 million in preferred stock from 22 U.S. banks under the Capital Purchase Program.

March 04, 2009

Fri, 03 Jul 2009 07:39:40 CST

The U.S. Treasury Department announces guidelines to enable servicers to begin modifications of eligible mortgages under the Homeowner Affordability and Stability Plan.

March 03, 2009

Fri, 03 Jul 2009 07:40:07 CST

The U.S. Treasury Department and the Federal Reserve Board announce the launch of the Term Asset-Backed Securities Loan Facility (TALF). Under the program, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated asset-backed securities backed by newly and recently originated auto loans, credit card loans, student loans and small business loans that are guaranteed by the Small Business Administration. The Federal Reserve and Treasury expect to include asset-backed securities backed by other types of loans in future monthly fundings. Subscriptions for funding in March will be accepted on March 17, 2009. Securitizations will be funded by the program on March 25, 2009. The program will hold monthly fundings through December 2009 or longer if extended by the Federal Reserve Board.

March 02, 2009

Fri, 03 Jul 2009 07:40:29 CST

The U.S. Treasury Department and Federal Reserve Board announce a restructuring of the government's assistance to American International Group (AIG). Under the restructuring, AIG will receive as much as $30 billion of additional capital from the Troubled Asset Relief Program (TARP). In addition, the U.S. Treasury Department will exchange its existing $40 billion cumulative preferred shares in AIG for new preferred shares with revised terms that more closely resemble common equity. Finally, AIG's revolving credit facility with the Federal Reserve Bank of New York will be reduced from $60 billion to no less than $25 billion and the terms will be modified. In exchange, the Federal Reserve will receive preferred interests in two special purpose vehicles created to hold the outstanding common stock of two subsidiaries of AIG: American Life Insurance Company and American International Assurance Company Ltd. Separately, AIG reports a fourth quarter 2008 loss of $61.7 billion, and a loss of $99.3 billion for all of 2008.

February 27, 2009

Wed, 04 Mar 2009 08:42:10 CST

The U.S. Treasury Department purchases a total of $394.9 million in preferred stock from 28 U.S. banks under the Capital Purchase Program.

February 27, 2009

Fri, 03 Jul 2009 07:40:49 CST

The U.S. Treasury Department announces its willingness to convert up to $25 billion of Citigroup preferred stock issued under the Capital Purchase Program into common equity. The conversion is contingent on the willingness of private investors to convert a similar amount of preferred shares into common equity. Remaining U.S. Treasury and FDIC preferred shares issued under the Targeted Investment Program and Asset Guarantee Program would be converted into a trust preferred security of greater structural seniority that would carry the same 8% cash dividend rate as the existing issue.

February 27, 2009

Fri, 03 Jul 2009 07:47:53 CST

The Federal Deposit Insurance Corporation (FDIC) announces changes in its risk-based assessment system and a 20 basis point emergency special assessment on insured depository institutions to be collected on September 30, 2009.

February 26, 2009

Fri, 27 Feb 2009 10:10:34 CST

The FDIC announces that the number of "problem banks" increased from 171 institutions with $116 billion of assets at the end of the third quarter of 2008, to 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008. The FDIC also announces that there were 25 bank failures and five assistance transactions in 2008, which was the largest annual number since 1993.

February 26, 2009

Fri, 03 Jul 2009 07:47:42 CST

Fannie Mae reports a loss of $25.2 billion in the fourth quarter of 2008, and a full year 2008 loss of $58.7 billion. Fannie Mae also reports that on February 25, 2009, the Federal Housing Finance Agency submitted a request for $15.2 billion from the U.S. Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement in order to eliminate Fannie Mae's net worth deficit as of December 31, 2008.

February 25, 2009

Wed, 25 Feb 2009 14:03:34 CST

The Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift Supervision announce that they will conduct forward-looking economic assessments or "stress tests" of eligible U.S. bank holding companies with assets exceeding $100 billion. Supervisors will work with the firms to estimate the range of possible future losses and the resources to absorb such losses over a two-year period.The assessment process is expected to be completed by the end of April 2009.

February 24, 2009

Wed, 25 Feb 2009 10:29:16 CST

The U.S. Treasury Department purchases a total of $365.4 million in preferred stock from 23 U.S. banks under the Capital Purchase Program.

February 23, 2009

Fri, 03 Jul 2009 07:47:21 CST

The U.S. Treasury Department, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision, and the Federal Reserve Board issue a joint statement that the U.S. government stands firmly behind the banking system, and that the government will ensure that banks have the capital and liquidity they need to provide the credit necessary to restore economic growth. Further, the agencies reiterate their determination to preserve the stability of systemically important financial institutions.

February 18, 2009

Fri, 03 Jul 2009 07:47:07 CST

President Obama announces The Homeowner Affordability and Stability Plan. The plan includes a program to permit the refinancing of conforming home mortgages owned or guaranteed by Fannie Mae or Freddie Mac that currently exceed 80 percent of the value of the underlying home. The plan also creates a $75 billion Homeowner Stability Initiative to modify the terms of eligible home loans to reduce monthly loan payments. In addition, the U.S. Treasury Department will increase its preferred stock purchase agreements with Fannie Mae and Freddie Mac to $200 billion, and increase the limits on the size of Fannie Mae and Freddie Mac's portfolios to $900 billion.

February 17, 2009

Tue, 24 Feb 2009 15:29:47 CST

President Obama signs into law the "American Recovery and Reinvestment Act of 2009", which includes a variety of spending measures and tax cuts intended to promote economic recovery.

February 17, 2009

Fri, 03 Jul 2009 07:46:45 CST

The U.S. Treasury Department releases its first monthly survey of bank lending by the top 20 recipients of government investment through the Capital Purchase Program. The survey found that banks continued to originate, refinance and renew loans from the beginning of the program in October through December 2008.

February 13, 2009

Wed, 18 Feb 2009 12:55:41 CST

The U.S. Treasury Department purchases a total of $429 million in preferred stock from 29 U.S. banks under the Capital Purchase Program.

February 10, 2009

Wed, 11 Feb 2009 14:59:53 CST

U.S. Treasury Secretary Timothy Geithner announces a Financial Stability Plan involving Treasury purchases of convertible preferred stock in eligible banks, the creation of a Public-Private Investment Fund to acquire troubled loans and other assets from financial institutions, expansion of the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF), and new initiatives to stem residential mortgage foreclosures and to support small business lending.

February 10, 2009

Wed, 11 Feb 2009 15:00:10 CST

The Federal Reserve Board announces that is prepared to expand the Term Asset-Backed Securities Loan Facility (TALF) to as much as $1 trillion and broaden the eligible collateral to include AAA-rated commercial mortgage-backed securities, private-label residential mortgage-backed securities, and other asset-backed securities. An expansion of the TALF would be supported by $100 billion from the Troubled Asset Relief Program (TARP). The Federal Reserve Board will announce the date that the TALF will commence operations later this month.

February 06, 2009

Wed, 18 Feb 2009 09:39:04 CST

The U.S. Treasury Department purchases a total of $238.5 million in preferred stock from 28 U.S. banks under the Capital Purchase Program.

February 06, 2009

Wed, 11 Feb 2009 15:26:05 CST

The Federal Reserve Board releases additional terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF). Under the TALF, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated asset-backed securities backed by newly and recently originated auto loans, credit card loans, student loans and SBA-guaranteed small business loans.

February 06, 2009

Thu, 22 Oct 2009 11:27:30 CST

The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.

February 03, 2009

Wed, 04 Feb 2009 13:24:15 CST

The Federal Reserve announces the extension, through October 30, 2009, of the existing liquidity programs scheduled to expire on April 30, 2009. The Board of Governors and the FOMC note "continuing substantial strains in many financial markets." In addition, the swap lines between the Federal Reserve and other central banks are also extended to October 30, 2009. The expiration date for the TALF remains December 31, 2009, and the TAF does not have an expiration date.

January 30, 2009

Wed, 04 Feb 2009 11:45:55 CST

The U.S. Treasury Department purchases a total of $1.15 billion in preferred stock from 42 U.S. banks under the Capital Purchase Program.

January 30, 2009

Wed, 04 Feb 2009 17:32:50 CST

The Board of Governors announces a policy to avoid preventable foreclosures on certain residential mortgage assets held, controlled or owned by a Federal Reserve Bank. The policy was developed pursuant to section 110 of the Emergency Economic Stabilization Act.

January 28, 2009

Mon, 02 Feb 2009 11:24:59 CST

The National Credit Union Administration (NCUA) Board announces that the NCUA will guarantee uninsured shares at all corporate credit unions through February 2009 and establish a voluntary guarantee program for uninsured shares of credit unions through December 2010. The Board also approves a $1 billion capital purchase in U.S. Central Corporate Federal Credit Union. Corporate credit unions provide financing, check clearing, and other services to retail credit unions.

January 23, 2009

Mon, 02 Feb 2009 12:27:12 CST

The U.S. Treasury Department purchases a total of $326 million in preferred stock from 23 U.S. banks under the Capital Purchase Program.

January 16, 2009

Mon, 02 Feb 2009 12:29:05 CST

The U.S. Treasury Department purchases a total of $1.4 billion in preferred stock from 39 U.S. banks under the Capital Purchase Program.

January 16, 2009

Fri, 03 Jul 2009 07:42:09 CST

The U.S. Treasury Department, Federal Reserve, and FDIC announce a package of guarantees, liquidity access, and capital for Bank of America. The U.S. Treasury and the FDIC will enter a loss-sharing arrangement with Bank of America on a $118 billion portfolio of loans, securities, and other assets in exchange for preferred shares. In addition, and if necessary, the Federal Reserve will provide a non-recourse loan to back-stop residual risk in the portfolio. Separately, the U.S. Treasury will invest $20 billion in Bank of America from the TARP in exchange for preferred stock.

January 16, 2009

Fri, 03 Jul 2009 07:42:28 CST

The U.S. Treasury Department, Federal Reserve and FDIC finalize terms of their guarantee agreement with Citigroup. (See announcement on November 23, 2008.)

January 16, 2009

Fri, 03 Jul 2009 07:42:44 CST

The U.S. Treasury Department announces that it will lend $1.5 billion from the TARP to a special purpose entity created by Chrysler Financial to finance the extension of new consumer auto loans.

January 13, 2009

Mon, 02 Feb 2009 12:21:18 CST

The Federal Home Loan Bank of Seattle reports that it will likely report a risk-based capital deficiency and suspend its dividend because of a decline in the market value of its mortgage-backed securities portfolio. The move follows a similar announcement on January 8 by the Federal Home Loan Bank of San Francisco.

January 12, 2009

Mon, 02 Feb 2009 12:20:52 CST

The FDIC issues a letter to FDIC-supervised institutions calling on them to implement a process to monitor their use of capital injections, liquidity support and/or financing guarantees obtained through Treasury, FDIC, and Federal Reserve financial stability programs.

January 12, 2009

Mon, 02 Feb 2009 12:20:22 CST

At the request of President-Elect Obama, President Bush submits a request to Congress for the remaining $350 billion in TARP funding for use by the incoming administration.

January 09, 2009

Mon, 02 Feb 2009 12:28:45 CST

The U.S. Treasury Department purchases a total of $4.8 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program.

January 09, 2009

Mon, 02 Feb 2009 12:18:44 CST

The Congressional Oversight Panel issues its second monthly report on the expenditure of the Troubled Asset Relief Program (TARP).

January 08, 2009

Mon, 02 Feb 2009 12:18:13 CST

Moody’s Investor Services issues a report suggesting that the Federal Home Loan Banks are currently facing the potential for significant accounting write-downs on their $76.2 billion private-label MBS securities portfolio. According to Moody’s, only four of 12 Banks’ capital ratios would remain above regulatory minimums under a worst-case scenario.

January 07, 2009

Mon, 02 Feb 2009 12:17:32 CST

The Federal Reserve Board announces two changes to the Money Market Investor Funding Facility (MMIFF) that 1) expand the set of institutions eligible to participate in the MMIFF and 2) reduce the minimum yield on assets eligible to be sold to the MMIFF.

January 05, 2009

Mon, 02 Feb 2009 12:16:08 CST

The Federal Reserve Bank of New York begins purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae under a program first announced on November 25, 2008.

December 31, 2008

Mon, 02 Feb 2009 15:51:06 CST

The U.S. Treasury Department purchases a total of $1.91 billion in preferred stock from seven U.S. banks under the Capital Purchase Program.

December 30, 2008

Mon, 02 Feb 2009 15:50:50 CST

The Federal Reserve Board announces that it expects to begin to purchase mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae under a previously announced program in early January 2009 (see November 25, 2008).

December 30, 2008

Mon, 02 Feb 2009 15:49:54 CST

The U.S. Securities and Exchange Commission (SEC) releases a report that recommends against the suspension of fair value accounting standards. The report was mandated by the Emergency Economic Stabilization Act of 2008 (EESA).

December 29, 2008

Mon, 02 Feb 2009 15:49:01 CST

The U.S. Treasury Department announces that it will purchase $5 billion in equity from GMAC as part of its program to assist the domestic automotive industry. The Treasury also agrees to lend up to $1 billion to General Motors "so that GM can participate in a rights offering at GMAC in support of GMAC's reorganization as a bank holding company." This commitment is in addition to the support announced on December 19, 2008.

December 24, 2008

Mon, 02 Feb 2009 15:48:41 CST

The Federal Reserve Board approves the applications of GMAC LLC and IB Finance Holding Company, LLC (IBFHC) to become bank holding companies, on conversion of GMAC Bank, a $33 billion Utah industrial loan company, to a commercial bank. GMAC Bank is a direct subsidiary of IBFHC and an indirect subsidiary of GMAC LLC, a $211 billion company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on these applications. As part of the agreement, General Motors will reduce its ownership interest in GMAC to less than 10 percent.

December 23, 2008

Mon, 02 Feb 2009 15:48:21 CST

The U.S. Treasury Department purchases a total of $15.1 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program.

December 22, 2008

Mon, 02 Feb 2009 15:48:01 CST

The Federal Reserve Board approves the application of CIT Group Inc., an $81 billion financing company, to become a bank holding company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on CIT Group’s application.

December 19, 2008

Mon, 02 Feb 2009 15:47:04 CST

The U.S. Treasury Department authorizes loans of up to $13.4 billion for General Motors and $4.0 billion for Chrysler from the TARP.

December 19, 2008

Mon, 02 Feb 2009 15:46:37 CST

The Federal Reserve Board announces revised terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF). Among the revisions are an extension of TALF loans from maturities of one year to three years and an expansion of eligible ABS collateral.

December 19, 2008

Mon, 02 Feb 2009 15:46:05 CST

The U.S. Treasury Department purchases a total of $27.9 billion in preferred stock in 49 U.S. banks under the Capital Purchase Program.

December 16, 2008

Mon, 02 Feb 2009 15:42:10 CST

The FOMC votes to establish a target range for the effective federal funds rate of 0 to 0.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 0.50 percent. The Federal Reserve Board also establishes the interest rates on required reserve balances and excess balances at 0.25 percent for reserve maintenance periods beginning December 18, 2008.

December 15, 2008

Mon, 02 Feb 2009 15:41:13 CST

The Federal Reserve Board announces that it has approved the application of PNC Financial Services to acquire National City Corporation.

December 12, 2008

Mon, 02 Feb 2009 15:40:38 CST

The U.S. Treasury Department purchases a total of $6.25 billion in preferred stock in 28 U.S. banks under the Capital Purchase Program.

December 11, 2008

Mon, 02 Feb 2009 15:40:04 CST

The Business Cycle Dating Committee of the National Bureau of Economic Research announces that a peak in U.S. economic activity occurred in December 2007 and that the economy has since been in a recession.

December 10, 2008

Mon, 02 Feb 2009 15:38:56 CST

The FDIC reiterates the guarantee of federal deposit insurance in the event of a bank failure.

December 05, 2008

Mon, 02 Feb 2009 15:38:42 CST

The U.S. Treasury Department purchases a total of $4 billion in preferred stock in 35 U.S. banks under the Capital Purchase Program.

December 03, 2008

Mon, 02 Feb 2009 15:38:23 CST

The SEC approves measures to increase transparency and accountability at credit rating agencies and thereby ensure that firms provide more meaningful ratings and greater disclosure to investors.

December 02, 2008

Mon, 02 Feb 2009 15:38:02 CST

The Federal Reserve Board announces that it will extend three liquidity facilities, the Primary Dealer Credit Facility (PDCF), the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), and the Term Securities Lending Facility (TSLF) through April 30, 2009.

November 26, 2008

Mon, 02 Feb 2009 13:40:11 CST

The Federal Reserve Board announces approval of the notice of Bank of America Corporation to acquire Merrill Lynch and Company.

November 25, 2008

Mon, 02 Feb 2009 15:37:15 CST

The Federal Reserve Board announces the creation of the Term Asset-Backed Securities Lending Facility (TALF), under which the Federal Reserve Bank of New York will lend up to $200 billion on a non-recourse basis to holders of AAA-rated asset-backed securities and recently originated consumer and small business loans. The U.S. Treasury will provide $20 billion of TARP money for credit protection.

November 25, 2008

Mon, 02 Feb 2009 15:36:53 CST

The Federal Reserve Board announces a new program to purchase direct obligations of housing related government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac and Federal Home Loan Banks—and MBS backed by the GSEs. Purchases of up to $100 billion in GSE direct obligations will be conducted as auctions among Federal Reserve primary dealers. Purchases of up to $500 billion in MBS will be conducted by asset managers.

November 23, 2008

Mon, 02 Feb 2009 15:36:19 CST

The U.S. Treasury Department, Federal Reserve Board, and FDIC jointly announce an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. Citigroup will issue preferred shares to the Treasury and FDIC in exchange for protection against losses on a $306 billion pool of commercial and residential securities held by Citigroup. The Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. In addition, the Treasury will invest an additional $20 billion in Citigroup from the TARP.

November 21, 2008

Mon, 02 Feb 2009 15:35:44 CST

The U.S. Treasury Department announces that it will help liquidate The Reserve Fund’s U.S. Government Fund. The Treasury agrees to serve as a buyer of last resort for the fund’s securities to ensure the orderly liquidation of the fund.

November 21, 2008

Mon, 02 Feb 2009 15:34:53 CST

The U.S. Treasury Department purchases a total of $3 billion in preferred stock in 23 U.S. banks under the Capital Purchase Program.

November 20, 2008

Mon, 02 Feb 2009 15:34:39 CST

Fannie Mae and Freddie Mac announce that they will suspend mortgage foreclosures until January 2009.

November 18, 2008

Mon, 02 Feb 2009 15:34:23 CST

Executives of Ford, General Motors, and Chrysler testify before Congress, requesting access to the TARP for federal loans.

November 17, 2008

Mon, 02 Feb 2009 15:34:02 CST

Three large U.S. life insurance companies seek TARP funding: Lincoln National, Hartford Financial Services Group, and Genworth Financial announce their intentions to purchase lenders/depositories and thus qualify as savings and loan companies to access TARP funding.

November 14, 2008

Mon, 02 Feb 2009 15:33:36 CST

The U.S. Treasury Department purchases a total of $33.5 billion in preferred stock in 21 U.S. banks under the Capital Purchase Program.

November 12, 2008

Mon, 02 Feb 2009 15:33:04 CST

U.S. Treasury Secretary Paulson formally announces that the Treasury has decided not to use TARP funds to purchase illiquid mortgage-related assets from financial institutions.

November 11, 2008

Mon, 02 Feb 2009 15:32:39 CST

The U.S. Treasury Department announces a new streamlined loan modification program with cooperation from the Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development, and the HOPE NOW alliance.

November 10, 2008

Mon, 02 Feb 2009 15:32:15 CST

The Federal Reserve Board approves the applications of American Express and American Express Travel Related Services to become bank holding companies.

November 10, 2008

Mon, 02 Feb 2009 15:31:27 CST

The Federal Reserve Board and the U.S. Treasury Department announce a restructuring of the government’s financial support of AIG. The Treasury will purchase $40 billion of AIG preferred shares under the TARP program, a portion of which will be used to reduce the Federal Reserve’s loan to AIG from $85 billion to $60 billion. The terms of the loan are modified to reduce the interest rate to the three-month LIBOR plus 300 basis points and lengthen the term of the loan from two to five years. The Federal Reserve Board also authorizes the Federal Reserve Bank of New York to establish two new lending facilities for AIG: The Residential Mortgage- Backed Securities Facility will lend up to $22.5 billion to a newly formed limited liability company (LLC) to purchase residential MBS from AIG; the Collateralized Debt Obligations Facility will lend up to $30 billion to a newly formed LLC to purchase CDOs from AIG (Maiden Lane III LLC).

November 05, 2008

Mon, 02 Feb 2009 15:30:42 CST

The Federal Reserve Board announces that it will alter the formula used to determine the interest rate paid to depository institutions on required and excess reserve balances. The rate on required reserves will be set equal to the average target federal funds rate over the reserve maintenance period. The rate on excess balances will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period.

October 29, 2008

Mon, 02 Feb 2009 15:29:40 CST

The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.00 percent. The Federal Reserve Board reduces the primary credit rate 50 basis points to 1.25 percent.

October 29, 2008

Mon, 02 Feb 2009 15:29:24 CST

The FOMC also establishes swap lines with the Banco Central do Brasil, Banco de Mexico, Bank of Korea, and the Monetary Authority of Singapore for up to $30 billion each.

October 29, 2008

Fri, 23 Jan 2009 00:00:00 CST

The International Monetary Fund (IMF) announces the creation of a short-term liquidity facility for market-access countries.

October 28, 2008

Mon, 02 Feb 2009 15:28:27 CST

The U.S. Treasury Department purchases a total of $125 billion in preferred stock in nine U.S. banks under the Capital Purchase Program.

October 28, 2008

Mon, 02 Feb 2009 15:28:07 CST

The FOMC and Reserve Bank of New Zealand establish a $15 billion swap line.

October 24, 2008

Mon, 02 Feb 2009 15:27:50 CST

PNC Financial Services Group Inc. purchases National City Corporation, creating the fifth largest U.S. bank.

October 22, 2008

Mon, 02 Feb 2009 15:27:09 CST

The Federal Reserve Board announces that it will alter the formula used to determine the interest rate paid to depository institutions on excess reserve balances. The new rate will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period less 35 basis points.

October 21, 2008

Mon, 02 Feb 2009 15:27:29 CST

The Federal Reserve Board announces creation of the Money Market Investor Funding Facility (MMIFF). Under the facility, the Federal Reserve Bank of New York provides senior secured funding to a series of special purpose vehicles to facilitate the purchase of assets from eligible investors, such as U.S. money market mutual funds. Among the assets the facility will purchase are U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions with a maturity of 90 days or less.

October 14, 2008

Mon, 02 Feb 2009 15:20:50 CST

The Federal Reserve announces additional details of the Commercial Paper Funding Facility (CPFF).

October 14, 2008

Mon, 02 Feb 2009 15:20:26 CST

The FOMC increases its swap line with the Bank of Japan.

October 14, 2008

Mon, 02 Feb 2009 15:19:50 CST

U.S. Treasury Department announces the Troubled Asset Relief Program (TARP) that will purchase capital in financial institutions under the authority of the Emergency Economic Stabilization Act of 2008. The U.S. Treasury will make available $250 billion of capital to U.S. financial institutions. This facility will allow banking organizations to apply for a preferred stock investment by the U.S. Treasury. Nine large financial organizations announce their intention to subscribe to the facility in an aggregate amount of $125 billion.

October 14, 2008

Mon, 02 Feb 2009 15:19:16 CST

The FDIC creates a new Temporary Liquidity Guarantee Program to guarantee the senior debt of all FDIC-insured institutions and their holding companies, as well as deposits in non-interest-bearing deposit transaction through June 30, 2009.

October 13, 2008

Mon, 02 Feb 2009 15:15:25 CST

The FOMC increases existing swap lines with foreign central banks. The Bank of England, European Central Bank, and Swiss National Bank announce that they will conduct tenders of U.S. dollar funding at 7-, 28-, and 84-day maturities at fixed interest rates.

October 12, 2008

Mon, 02 Feb 2009 15:15:06 CST

The Federal Reserve Board announces its approval of an application by Wells Fargo & Co. to acquire Wachovia Corporation.

October 08, 2008

Mon, 02 Feb 2009 15:13:38 CST

The Federal Reserve Board authorizes the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade, fixed-income securities from American International Group (AIG) in return for cash collateral.

October 08, 2008

Mon, 02 Feb 2009 15:13:18 CST

The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 1.75 percent.

October 07, 2008

Mon, 02 Feb 2009 15:12:54 CST

The Federal Reserve Board announces the creation of the Commercial Paper Funding Facility (CPFF), which will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers.

October 07, 2008

Mon, 02 Feb 2009 15:11:24 CST

The FDIC announces an increase in deposit insurance coverage to $250,000 per depositor as authorized by the Emergency Economic Stabilization Act of 2008.

October 06, 2008

Mon, 02 Feb 2009 15:10:41 CST

The Federal Reserve Board announce that the Fed will pay interest on depository institutions’ required and excess reserve balances at an average of the federal funds target rate less 10 basis points on required reserves and less 75 basis points on excess reserves.

October 03, 2008

Tue, 03 Feb 2009 08:33:58 CST

Wells Fargo announces a competing proposal to purchase Wachovia Corporation that does not require assistance from the FDIC.

October 03, 2008

Thu, 05 Feb 2009 11:22:36 CST

Congress passes and President Bush signs into law the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), which establishes the $700 billion Troubled Asset Relief Program (TARP).

September 29, 2008

Mon, 02 Feb 2009 14:40:31 CST

The FOMC authorizes a $330 billion expansion of swap lines with Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank, ECB, Norges Bank, Reserve Bank of Australia, Sveriges Riksbank, and Swiss National Bank Swap lines outstanding now total $620 billion. The Federal Reserve Board expands the TAF, announcing an increase in the size of the 84-day maturity auction to $75 billion and two forward TAF auctions totaling $150 billion to provide short-term (one- to two-week) TAF credit over year-end.

September 29, 2008

Mon, 02 Feb 2009 14:36:17 CST

The U.S. Treasury Department opens its Temporary Guarantee Program for Money Market Funds [see note for September 19]. The temporary guarantee program provides coverage to shareholders for amounts that they held in participating money market funds as of the close of business on September 19, 2008.

September 29, 2008

Mon, 02 Feb 2009 13:56:47 CST

The FDIC announces that Citigroup will purchase the banking operations of Wachovia Corporation. The FDIC agrees to enter into a loss-sharing arrangement with Citigroup on a $312 billion pool of loans, with Citigroup absorbing the first $42 billion of losses and the FDIC absorbing losses beyond that. In return, Citigroup would grant the FDIC $12 billion in preferred stock and warrants.

September 29, 2008

Mon, 02 Feb 2009 13:55:40 CST

The U.S. House of Representatives rejects legislation submitted by the Treasury Department requesting authority to purchase troubled assets from financial institutions [see note for September 20].

September 26, 2008

Mon, 02 Feb 2009 13:53:31 CST

The FOMC increases existing swap lines with the ECB by $10 billion and the Swiss National Bank by $3 billion.

September 25, 2008

Mon, 02 Feb 2009 13:53:08 CST

The Office of Thrift Supervision closes Washington Mutual Bank. JPMorgan Chase acquires the banking operations of Washington Mutual in a transaction facilitated by the FDIC.

September 24, 2008

Mon, 02 Feb 2009 13:52:17 CST

The FOMC establishes new swap lines with the Reserve Bank of Australia and the Sveriges Riksbank for up to $10 billion each and with the Danmarks Nationalbank and the Norges Bank for up to $5 billion each. The swap lines are authorized through January 30, 2009.

September 21, 2008

Mon, 02 Feb 2009 13:51:56 CST

The Federal Reserve Board approves applications of investment banking companies Goldman Sachs and Morgan Stanley to become bank holding companies.

September 20, 2008

Mon, 02 Feb 2009 13:50:12 CST

The U.S. Treasury Department submits draft legislation to Congress for authority to purchase troubled assets.

September 19, 2008

Mon, 02 Feb 2009 13:48:55 CST

The Federal Reserve Board announces the creation of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) to extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance their purchase of high-quality asset-backed commercial paper from money market mutual funds. The Federal Reserve Board also announces plans to purchase federal agency discount notes (short-term debt obligations issued by Fannie Mae, Freddie Mac, and Federal Home Loan Banks) from primary dealers.

September 19, 2008

Mon, 02 Feb 2009 13:46:37 CST

The U.S. Treasury Department announces a temporary guaranty program that will make available up to $50 billion from the Exchange Stabilization Fund to guarantee investments in participating money market mutual funds.

September 18, 2008

Mon, 02 Feb 2009 13:45:29 CST

The FOMC expands existing swap lines by $180 billion and authorizes new swap lines with the Bank of Japan, Bank of England, and Bank of Canada.

September 17, 2008

Mon, 02 Feb 2009 13:43:57 CST

The U.S. Treasury Department announces a Supplementary Financing Program consisting of a series of Treasury bill issues that will provide cash for use in Federal Reserve initiatives.

September 17, 2008

Mon, 02 Feb 2009 13:44:33 CST

The SEC announces a temporary emergency ban on short selling in the stocks of all companies in the financial sector.

September 16, 2008

Mon, 02 Feb 2009 13:43:07 CST

The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act.

September 16, 2008

Mon, 02 Feb 2009 13:42:00 CST

The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.

September 16, 2008

Mon, 02 Feb 2009 13:39:31 CST

The net asset value of shares in the Reserve Primary Money Fund falls below $1, primarily due to losses on Lehman Brothers commercial paper and medium-term notes.

September 15, 2008

Mon, 02 Feb 2009 13:40:32 CST

Bank of America announces its intent to purchase Merrill Lynch & Co. for $50 billion.

September 15, 2008

Mon, 02 Feb 2009 13:38:39 CST

Lehman Brothers Holdings Incorporated files for Chapter 11 bankruptcy protection.

September 14, 2008

Mon, 02 Feb 2009 13:36:32 CST

The Federal Reserve Board expands the list of eligible collateral for the PDCF to include any collateral that can be pledged in the tri-party repo system of the two major clearing banks. Previously PDCF collateral had been limited to investment-grade debt securities. The Board also expands the list of collateral accepted by TSLF to include all investment-grade debt securities and increases the frequency of Schedule 2 TSLF auctions and total offering to $150 billion. The Board also adopts an interim final rule that provides temporary exceptions to Section 23A of the Federal Reserve Act to allow insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market.

September 07, 2008

Mon, 02 Feb 2009 13:35:20 CST

The Federal Housing Finance Agency (FHFA) places Fannie Mae and Freddie Mac in government conservatorship. The U.S. Treasury Department announces three additional measures to complement the FHFA’s decision: 1) Preferred stock purchase agreements between the Treasury/FHFA and Fannie Mae and Freddie Mac to ensure the GSEs positive net worth; 2) a new secured lending facility which will be available to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks; and 3) a temporary program to purchase GSE MBS.

August 17, 2008

Mon, 02 Feb 2009 13:34:41 CST

Following an intermeeting conference call, the FOMC releases a statement about the current financial market turmoil, and notes that the “downside risks to growth have increased appreciably.”

August 05, 2008

Mon, 02 Feb 2009 13:33:32 CST

The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.

July 30, 2008

Mon, 02 Feb 2009 13:03:19 CST

President Bush signs into law the Housing and Economic Recovery Act of 2008 (Public Law 110-289), which, among other provisions, authorizes the Treasury to purchase GSE obligations and reforms the regulatory supervision of the GSEs under a new Federal Housing Finance Agency.

July 30, 2008

Mon, 02 Feb 2009 13:05:12 CST

The Federal Reserve Board extends the TSLF and PDCF through January 30, 2009, introduces auctions of options on $50 billion of draws on the TSLF, and introduces 84-day TAF loans. The FOMC increases its swap line with the ECB to $55 billion.

July 15, 2008

Mon, 02 Feb 2009 13:02:47 CST

The Securities Exchange Commission (SEC) issues an emergency order temporarily prohibiting naked short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.

July 13, 2008

Mon, 02 Feb 2009 13:28:03 CST

The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), should such lending prove necessary.

July 13, 2008

Mon, 02 Feb 2009 13:02:06 CST

The U.S. Treasury Department announces a temporary increase in the credit lines of Fannie Mae and Freddie Mac and a temporary authorization for the Treasury to purchase equity in either GSE if needed.

July 11, 2008

Mon, 02 Feb 2009 13:00:39 CST

The Office of Thrift Supervision closes IndyMac Bank, F.S.B. The Federal Deposit Insurance Corporation (FDIC) announces the transfer of the insured deposits and most assets of IndyMac Bank, F.S.B. to IndyMac Federal Bank, FSB.

June 25, 2008

Mon, 02 Feb 2009 12:59:58 CST

The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.

June 05, 2008

Mon, 02 Feb 2009 12:58:57 CST

The Federal Reserve Board announces approval of the notice of Bank of America to acquire Countrywide Financial Corporation.

June 05, 2008

Mon, 02 Feb 2009 12:59:40 CST

Standard and Poor’s downgrades monoline bond insurers AMBAC and MBIA from AAA to AA.

May 02, 2008

Mon, 02 Feb 2009 13:07:58 CST

The FOMC expands the list of eligible collateral for Schedule 2 TSLF auctions to include AAA/Aaa-rated asset-backed securities, in addition to already eligible residential and commercial MBS and agency collateralized mortgage obligations. The FOMC also increases existing swap lines with the ECB by $20 billion and with the Swiss National Bank by $6 billion. The Federal Reserve Board expands TAF auctions from $50 billion to $75 billion.

April 30, 2008

Mon, 02 Feb 2009 12:53:52 CST

The FOMC votes to reduce its target for the federal funds rate 25 basis points to 2 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 2.25 percent.

March 24, 2008

Mon, 02 Feb 2009 12:52:41 CST

The Federal Reserve Bank of New York announces that it will provide term financing to facilitate JPMorgan Chase & Co.’s acquisition of The Bear Stearns Companies Inc. A limited liability company (Maiden Lane) is formed to control $30 billion of Bear Stearns assets that are pledged as security for $29 billion in term financing from the New York Fed at its primary credit rate. JPMorgan Chase will assume the first $1 billion of any losses on the portfolio.

March 18, 2008

Mon, 02 Feb 2009 12:49:58 CST

The FOMC votes to reduce its target for the federal funds rate 75 basis points to 2.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 2.50 percent.

March 16, 2008

Mon, 02 Feb 2009 12:49:36 CST

The Federal Reserve Board establishes the Primary Dealer Credit Facility (PDCF), extending credit to primary dealers at the primary credit rate against a broad range of investment grade securities. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 3.25 percent, lowering the spread between the primary credit rate and FOMC target for the federal funds rate to 25 basis points. The Board also votes to increase the maximum maturity of primary credit loans to 90 days.

March 14, 2008

Mon, 02 Feb 2009 12:48:44 CST

The Federal Reserve Board approves the financing arrangement announced by JPMorgan Chase and Bear Stearns [see note for March 24]. The Federal Reserve Board also announces they are “monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly function of the financial system.”

March 11, 2008

Thu, 05 Feb 2009 11:11:08 CST

The Federal Reserve Board announces the creation of the Term Securities Lending Facility (TSLF), which will lend up to $200 billion of Treasury securities for 28-day terms against federal agency debt, federal agency residential mortgage-backed securities (MBS), non-agency AAA/Aaa private label residential MBS, and other securities. The FOMC increases its swap lines with the ECB by $10 billion and the Swiss National Bank by $2 billion and also extends these lines through September 30, 2008.

March 07, 2008

Thu, 05 Feb 2009 11:07:16 CST

The Federal Reserve Board announces $50 billion TAF auctions on March 10 and March 24 and extends the TAF for at least 6 months. The Board also initiates a series of term repurchase transactions, expected to cumulate to $100 billion, conducted as 28-day term repurchase agreements with primary dealers.

March 05, 2008

Mon, 02 Feb 2009 12:45:19 CST

Carlyle Capital Corporation receives a default notice after failing to meet margin calls on its mortgage bond fund.

February 17, 2008

Mon, 02 Feb 2009 12:43:47 CST

Northern Rock is taken into state ownership by the Treasury of the United Kingdom.

February 13, 2008

Mon, 02 Feb 2009 12:43:16 CST

President Bush signs the Economic Stimulus Act of 2008 (Public Law 110-185) into law.

January 30, 2008

Mon, 02 Feb 2009 12:36:43 CST

The FOMC votes to reduce its target for the federal funds rate 50 basis points to 3 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 3.5 percent.

January 22, 2008

Mon, 02 Feb 2009 12:36:17 CST

In an intermeeting conference call, the FOMC votes to reduce its target for the federal funds rate 75 basis points to 3.5 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 4 percent.

January 18, 2008

Mon, 02 Feb 2009 12:31:59 CST

Fitch Ratings downgrades Ambac Financial Group’s insurance financial strength rating to AA, Credit Watch Negative. Standard and Poor’s place Ambac’s AAA rating on CreditWatch Negative.

January 11, 2008

Mon, 02 Feb 2009 12:27:57 CST

Bank of America announces that it will purchase Countrywide Financial in an all-stock transaction worth approximately $4 billion.

December 21, 2007

Mon, 02 Feb 2009 12:25:12 CST

The Federal Reserve Board announces that TAF auctions will be conducted every two weeks as long as financial market conditions warrant.

December 21, 2007

Mon, 02 Feb 2009 12:07:27 CST

Citigroup, JPMorgan Chase, and Bank of America abandon plans for the Master Liquidity Enhancement Conduit, announcing that the fund “is not needed at this time.”

December 12, 2007

Mon, 02 Feb 2009 12:06:59 CST

The Federal Reserve Board announces the creation of a Term Auction Facility (TAF) in which fixed amounts of term funds will be auctioned to depository institutions against a wide variety of collateral. The FOMC authorizes temporary reciprocal currency arrangements (swap lines) with the European Central Bank (ECB) and the Swiss National Bank (SNB). The Fed states that it will provide up to $20 billion and $4 billion to the ECB and SNB, respectively, for up to 6 months.

December 11, 2007

Mon, 02 Feb 2009 12:05:57 CST

The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 4.75 percent.

November 01, 2007

Mon, 02 Feb 2009 12:05:14 CST

Financial market pressures intensify, reflected in diminished liquidity in interbank funding markets.

October 31, 2007

Mon, 02 Feb 2009 12:04:41 CST

The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 5.00 percent.

October 15, 2007

Mon, 02 Feb 2009 12:04:18 CST

Citigroup, Bank of America, and JPMorgan Chase announce plans for an $80 billion Master Liquidity Enhancement Conduit to purchase highly rated assets from existing special purpose vehicles.

October 10, 2007

Mon, 02 Feb 2009 12:01:29 CST

U.S. Treasury Secretary Paulson announces the HOPE NOW initiative, an alliance of investors, servicers, mortgage market participants, and credit and homeowners’ counselors encouraged by the Treasury Department and the Department of Housing and Urban Development.

September 18, 2007

Mon, 02 Feb 2009 11:09:11 CST

The FOMC votes to reduce its target for the federal funds rate 50 basis points to 4.75 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.25 percent.

September 14, 2007

Mon, 02 Feb 2009 11:08:51 CST

The Chancellor of the Exchequer authorizes the Bank of England to provide liquidity support for Northern Rock, the United Kingdom’s fifth-largest mortgage lender.

August 17, 2007

Mon, 02 Feb 2009 11:08:07 CST

The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.75 percent, bringing the rate to only 50 basis points above the FOMC’s federal funds rate target. The Board also increases the maximum primary credit borrowing term to 30 days, renewable by the borrower.

August 16, 2007

Mon, 02 Feb 2009 11:02:44 CST

Fitch Ratings downgrades Countrywide Financial Corporation to BBB+, its third lowest investment-grade rating, and Countrywide borrows the entire $11.5 billion available in its credit lines with other banks.

August 10, 2007

Mon, 02 Feb 2009 11:01:57 CST

The Federal Reserve Board announces that it “will provide reserves as necessary…to promote trading in the federal funds market at rates close to the FOMC’s target rate of 5.25 percent. In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets. As always, the discount window is available as a source of funding.”

August 09, 2007

Mon, 02 Feb 2009 11:02:09 CST

BNP Paribas, France’s largest bank, halts redemptions on three investment funds.

August 07, 2007

Mon, 02 Feb 2009 10:50:00 CST

The FOMC votes to maintain its target for the federal funds rate at 5.25 percent.

August 06, 2007

Mon, 02 Feb 2009 10:49:03 CST

American Home Mortgage Investment Corporation files for Chapter 11 bankruptcy protection.

July 31, 2007

Mon, 02 Feb 2009 11:24:07 CST

Bear Stearns liquidates two hedge funds that invested in various types of mortgage-backed securities.

July 24, 2007

Mon, 02 Feb 2009 10:42:07 CST

Countrywide Financial Corporation warns of “difficult conditions.”

July 11, 2007

Mon, 02 Feb 2009 10:39:27 CST

Standard and Poor’s places 612 securities backed by subprime residential mortgages on a credit watch.

June 28, 2007

Mon, 02 Feb 2009 10:38:23 CST

The Federal Open Market Committee (FOMC) votes to maintain its target for the federal funds rate at 5.25 percent.

June 07, 2007

Mon, 02 Feb 2009 11:24:48 CST

Bear Stearns informs investors that it is suspending redemptions from its High-Grade Structured Credit Strategies Enhanced Leverage Fund.

June 01, 2007

Mon, 02 Feb 2009 10:32:46 CST

Standard and Poor’s and Moody’s Investor Services downgrade over 100 bonds backed by second-lien subprime mortgages.

April 02, 2007

Mon, 02 Feb 2009 10:38:53 CST

New Century Financial Corporation, a leading subprime mortgage lender, files for Chapter 11 bankruptcy protection.

February 27, 2007

Mon, 02 Feb 2009 10:23:35 CST

The Federal Home Loan Mortgage Corporation (Freddie Mac) announces that it will no longer buy the most risky subprime mortgages and mortgage-related securities.