banking

Great Recession timeline

In the months leading to September 2008, the government plugged several major leaks in the financial system. But in that month alone, Lehman Brothers Holdings Inc. filed for bankruptcy protection, the government took over Fannie Mae and Freddie Mac, and the Federal Reserve injected the American International Group with a major cash infusion to keep it from failing.

Still, the Great Recession of 2008 didn't just happen in one month. It took years to correct the easy-money policies and lax standards of Wall Street. This timeline gives a blow-by-blow account of how the Great Recession unfolded and how the government and the banking industry responded.

Click on a headline to see more information about the event.


2007

Freddie tightens standards
Dow hits all-time high

2008

Bush signs tax stimulus
Fed bails out Bear Stearns
Countrywide sold to BofA
Fed backstops Fannie, Freddie
Bush signs homeowner aid bill
FHFA takes over GSEs
BofA buys Merrill, Lehman folds
Fed bails out AIG
SEC suspends short selling
Partial sale of Morgan Stanley
Regulators close WaMu
Congress loans Big 3 $25 billion
Wells buys Wachovia
Bush signs TARP into law
Treasury puts $125 billion into banks
PNC buys National City
Treasury buys into AIG
Insurance firms seek TARP help
Fannie, Freddie halt foreclosures
Citigroup bailed out
Fed begins QE1
Official recession declared
Fed cuts key rate to near zero
Bush signs loans for Big 3
GMAC bank bailed out
25 bank failures in 2008

2009

Fed begins buying agency MBS
Chrysler gets Treasury bailout
Obama signs stimulus bill
Obama unveils borrower relief
Fed intros bank stress tests
Fannie reports $58.7 billion loss
AIG gets more bailout cash
Dow hits 12-year low
Freddie reports $50 billion loss
Fed keeps rate zero, buys MBS
US bails out auto suppliers
10 banks fail stress tests
FDIC limits raised to $250K
GM enters managed bankruptcy
140 bank failures in 2009

2010

End of QE1
Dodd-Frank becomes law
Fed announces QE2

2011

End of QE2
CFPB comes online

2012

Fed announces QE3
51 bank failures in 2012

2013

Dow hits new all-time high
Fed tapers economic stimulus

Sources: Federal Reserve, Congressional Budget Office, Consumer Financial Protection Bureau, Internal Revenue Service, Federal Housing Finance Agency, Federal Department of Housing and Urban Development, Bank of America, Federal Deposit Insurance Corp., PNC Bank, Wells Fargo, Consumer Reports, The New York Times, CNN.

advertisement

Show Bankrate's community sharing policy
          Connect with us
REFINANCE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed refi 4.04%  0.02 4.02%
15 year fixed refi 3.16%  0.07 3.09%
10 year fixed refi 3.20%  0.03 3.17%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.33%  0.01 4.32%
50K FICO-based HELOC 4.06% --0.00 4.06%
100K FICO-based HELOC 3.92% --0.00 3.92%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.81% --0.00 2.81%
48 month used car loan 3.03%  0.01 3.04%
60 month new car loan 3.25%  0.01 3.24%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 1.00%  0.01 1.01%
2 Year CD 1.20% --0.00 1.20%
5 Year CD 1.84%  0.02 1.86%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.73% --0.00 15.73%
Cash Back Cards 16.43% --0.00 16.43%
Low Interest Cards 10.98% --0.00 10.98%
 
Next
advertisement
FRUGAL NEWSLETTER

Discover new ways to cut costs and save more every day. Reduce your spending, not life’s pleasures. Delivered weekly.

advertisement
Partner Center
advertisement

Connect with us