The G20 countries meet on Saturday to find a concerted action plan to face the global financial crisis. A crisis that started long before the bankruptcy of the American bank Lehman Brothers in September and has its origins in the bursting of the Internet bubble in 2000. However, everything seems to have accelerated with the famous "subprimes". A look back at the major stages of what some call "economic September 11".
2007
February: the word "subprime" is starting to be talked about
Defaults on mortgage loans granted to weak borrowers (>> to understand, click here) are on the increase in the United States and are causing the first bankruptcies of specialized banking establishments.
October / December: bad news for banks
Several major banks are announcing significant asset impairments linked to “subprime”. US merchant bank Merrill Lynch reports annual net loss of $ 7,8 billion,
2008
February 17: Northern Rock Bank is nationalized
To the great surprise, the British government decided to nationalize the eighth bank in the country. A few months earlier, Northern Rock had requested an emergency loan from the English central bank to escape bankruptcy, causing a rush of thousands of customers at the counters and the fall of 30% of its share price. The bank is one of the first big victims of the “supreme” crisis.
September 7: Freddie Mac and Fannie Mae are placed under guardianship
The bad signs are multiplying. The US Treasury puts mortgage giants Freddie Mac and Fannie Mae under guardianship, the time for them to restructure their finances, by guaranteeing their debt to the tune of $ 200 billion.
September 15: Lehman Brothers files for bankruptcy
Less fortunate than Freddie Mac and Fannie Mae, the American investment bank Lehman Brothers is dropped by the Treasury and must file for bankruptcy. In addition, one of the main American banks, Bank of America, announces the acquisition of Merrill Lynch.
September 16: AIG is nationalized
Insurance is also affected. Under the “too big to fail” rule, the Fed and the government de facto nationalize the insurer AIG (American International Group), threatened with bankruptcy, by providing it with assistance of $ 85 billion in exchange for 79,9% of its capital.
September 28: Fortis is bailed out
The crisis is approaching France. Fortis Bank was bailed out by the Belgian, Dutch and Luxembourg authorities. In Great Britain, the Bradford and Bingley bank is nationalized.
September 29: US $ 700 billion bailout rejected
The US House of Representatives rejects the bailout. Wall Street plummets. Earlier in the day, European markets had also fallen very sharply as interbank rates continued to climb, preventing banks from refinancing.
September 30: Dexia is nationalized
The French State must contribute 1 billion euros to the Franco-Belgian bank, as part of a rescue plan for a total amount of 6,4 billion.
October 3: The Paulson plan is finally adopted
After an equally favorable vote in the Senate, the House of Representatives finally adopted the $ 700 billion bank bailout.
October 4: Sarkozy steps up
The President-in-Office of the European Union is organizing an emergency meeting in Paris of the four European G8 member countries (Germany, France, Italy and the United Kingdom). But they cannot agree on the creation of a European fund to support financial institutions.
October 5: BNP Paribas takes over Fortis
The French bank takes over Fortis in Belgium and Luxembourg, becoming the leading deposit bank in Europe.
October 8: London announces rescue plan
It includes a partial nationalization of banks, worth 50 billion pounds (65 billion euros). >> To understand this English-style Paulson plan, click here
12 October: Eurogroup agrees on a rescue plan
The 15 countries of the Eurogroup agree on an action plan, which consists of guaranteeing interbank loans and possible recourse to bank recapitalization.
October 13: France frees 360 billion euros for banks
The government announces the French component of the European bank rescue plan. Amount: 360 billion euros. >> For an update on the aid system for French banks, click here.
October 17: Caisse d'Epargne loses € 751 million on the stock market
The bank announces that an "incident" on the markets made it lose 600 million euros. A few days later, she corrected: it was actually 751 million. A trader is indicted for “breach of trust”.
October 24: Iceland in near bankruptcy
The island is officially asking the IMF for $ 2 billion in aid to help it overcome the financial crisis that has devastated its banking system.
November 15: G20 meets in Washington to find an action plan
At the initiative of Nicolas Sarkozy, the meeting of the major industrialized and emerging countries takes place after the American presidential election. Objective: to lay the foundations for a reform of the global financial system. Extensive program.
Source: http://www.20minutes.fr/article/257618/ ... -crise.php
