Bank failures and rescues/Timelines: Difference between revisions
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Revision as of 04:24, 17 July 2009
A chronology of bank failures and rescues
Before WW1
United States
Bank runs occur in 1793, 1797, 1810, 1815, 1819, 1825, 1833, 1837, 1839, 1847, 1857, 1873, 1884, 1890, 1893, and 1907 [1] [2].
1914 Federal Reserve Bank created [3].
United Kingdom
1866 Overend-Gurney collapse causes banking panic [4]
1890 Barings crisis. Bank of England organises rescue of Barings bank by Rothschilds
The inter-war years
US bank failure statistics
Year 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935/40 average Number of bank suspensions 618 976 669 488 659 1350 2293 1453 4000 57 40
- (Source Federal Reserve Bank of St Louis [5].)
1923
Norway: failure of Centralbanken for Norge.
1925
Spain: failure of Banco de la Union Miniere and Banco Vasca.
1926
Poland: runs on 3 major banks.
1927
Japan: runs on 32 banks.
1929
Austria: failure of Bodencreditanstalt. Germany: failure of Frankfurter Allgemeine Versicherungs AG.
1930
United States: failure of the Bank of America. France: failure of Banque Adam and the Oustric Group.
1931
United States: failure of over 1800 banks. Austria: failure of Creditanstalt Bank. France: failure of Banque Nationale de Crédit, Rumania: failure of Banca Generale a Tari Românesti and Banca Marmerosh. Runs on banks in Argentina, Poland, Germany, Hungary, Latvia, Turkey, Egypt and Mexico.
1932
United States: Chicago banking panic
1933
United States: general banking panic, followed by "banking holiday". Federal Deposit Insurance Corporation Created [6].
1934
Belgium: failure of Banque Nationale de Travail.
1940 to 2007
( (S) denotes a crisis that is classed as systemic on the World Bank database of banking crises [7])
The 1970s
1974 German Herstatt bank failure
- UK Secondary banking crisis.
1977 Banking crises in Israel (S) and Spain (S).
The 1980s
US Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [8]
1981 Mexican banking crisis (S) [9].
1982 Banking crises in Singapore (S) and Turkey (S).
1984 80 US bank failures
- UK Johnson Matthey bank failure.
1985 120 US bank failures.
1987 Danish banking crisis.
1988 Norwegian banking crisis starts [13].
The 1990s
The decade:
- Failure of a further 451 US "Savings and Loans" mortgage lenders.
1990 Bank of New England failure [14].
- Banking crises in China (S) and Italy (S).
1991 Banking crises in Germany, Finland (S) and Japan (S).
- UK Bank of Credit and Commerce International failure [15].
1994 Banking crises in Australia (S) , France, Brazil (S) and Mexico (S).
- Japanese credit cooperatives Tokyo Kyowa and Anzen fail.
1995 UK Barings bank failure [16].
1996 Jamaican banking crisis (S).
1997 The beginning of the Asian banking crisis (S) [17][18].
1998 US Long Term Capital Management hedge fund rescue [19]
Early 2000s
2001 Argentinian banking crisis (S).
2007
The year 2007
- The bursting of the United States housing bubble and the development there of the subprime mortgages crisis.
March
- Signs of crisis in the US subprime mortgages market[20]
April
- Failure of New Century Financial (the second-largest subprime lender)[21]
June
- 25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [22].
August
- 2 German IKB bank rescue [23]
- 6 American Home Mortgage bankrupt [24].
- 9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [25]
September
- UK Northern Rock bank run [26]
October
- Citibank, Merill Lynch and UBS announce writedowns
December
2008
January
- US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [29].
February
- Northern Rock bank nationalised[30].
March
- Bear Stearns bought by J P Morgan Chase & Co for $2 a share[31] [32] (with $30 billion support from the Fesderal Reserve)
August
- Fannie Mae and Freddie Mac rescued [33].
September
- 7 Fannie Mae and Freddie Mac nationalised [34].
- 12 Lehman Brothers bankrupt [35] with losses of $365 billion to insurers of its bonds.
- 15 Merrill Lynch sold to Bank of America after major capital write-downs [36].
- 17 American Insurance Group nationalised [37].
- UK's Halifax/Bank of Scotland (HBOS) accepts rescue bid from Lloyds TSB [38].
- 18 Paulson Rescue plan proposed (US Treasury scheme to take "toxic assets" out of the US banking system) [39]
- 23 Federal Reserve Bank protects Goldman Sachs and Morgan Stanley banks[40].
- 26 Washington Mutual closed by regulator. Assets sold to JPMorgan Chase [41].
- 28 UK bank Bradford and Bingley nationalised [42].
- Multiple European bank rescues [43].
- 30 Icelandic Glitnir bank nationalised [44].
October
- 3 Modified Paulson Plan (to purchase toxic assets) approved by Congress [45].
- Dutch Fortis and ABN Amro banks nationalised [46].
- German Hypo Real Estate bank rescued [47]
- Icelandic economic crisis [48].
- 6 US Wachovia Corp rescued [49].
- 7 Federal Reserve announces its Commercial Paper Funding Scheme[50]
- 8 UK rescue plan (to inject capital, take equity in banks and guarantee interbank lending) [51] [52].
- 10 G7 Action Plan agreed in general terms by finance ministers [53].
- 12 EU leaders adopt UK rescue plan' :[54].
- 13 UK government to take equity in Royal Bank of Scotland, Lloyds TSB and Halifax/Bank of Scotland[55] [56][57].
- 14 President Bush announces new plans (to inject capital, take equity in banks and guarantee interbank lending) [58].
- US government to take equity in Bank of America, J P Morgan Chase, Citigroup, Morgan Stanley, & Goldman Sachs[59].
- 16 UBS rescue by £30 bn from Swiss government [60].
- 23 Federal Reserve Bank provides $540 billion support for money market funds.
- German bank BayernLLB seeks $7 billion aid
- French government provides $14 billion aid to BNP Paribas, Credit Agricole and 4 other banks.
- Swedish government announces $200 billion rescue proposal.
- Dutch ING bank gets $13 billion government lifeline.
November
- 20 FDIC announces its loan guarantee scheme[61]
- 23 US Federal Reserve Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [62].
- US government makes $20 billion cash injection into Citigroup bank and guarantees against loss on $306 billion of iliquid assets [63] [64] [65][66]
December
- US government rescues CIT Group for $2.3bn
- US government rescues Fifth Third Bankcorp for $3.4bn
- US government rescues PNC Suntrust Banks for $1.4bn
- Irish government rescues Allied Irish Banks for $2.0bn.
2009
- January
- US government rescues Bank of America for £20bn
- German government rescues WestLB for $6.4bn.
- February
- More on the Asset Protection Scheme [67]
- March
- UK government to take controlling interest in Lloyds TSB under its Asset Protection Scheme [68].
- April
- According to the European Commission, member governments have so far committed $3.9 trillion (25% of the 27-nation GDP) to bank rescues [69].
- May
- EU Commission's regulatory proposals[70]
- June
- President Obama's proposals for regulatory reform[71]