Six years ago, the financial crisis crippled the American banking industry, and the devastating effects ripple across the world.
Businesses went down, and people lost their jobs.
But the memory of the key events of the financial crisis is slowly fading. Hearings, lawsuits, bailouts — it all gets muddled together.
Business Insider has outlined the major moments from 2007 to 2009.
From the initial reports of subprime defaults to the collapse of Lehman Brothers to AIG’s second bailout, here are the 27 scariest moments of the financial crisis.
Editor’s Note: Former Business Insider reporter Steven Perlberg contributed to this feature.
APRIL 2, 2007: New Century files for bankruptcy. It was the largest subprime lender in the United States.
JUNE 21, 2007: Merrill Lynch sells off assets in two Bear Stearns hedge funds as the funds hemorrhage billions of dollars on bad subprime bets.
AUG. 9, 2007: France's largest bank, BNP Paribas, freezes withdrawals from three investment funds after U.S. subprime mortgage losses crush markets. 'The complete evaporation of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating,' BNP said in the release.
SEPT. 4, 2007: Libor -- the interbank interest rate -- hits 6.7975%, its highest level since December 1998.
OCT. 24, 2007: Merrill Lynch announces an $US8.4 billion quarterly loss, the largest in its history, thanks to write-downs on subprime mortgages.
OCT to NOV 2007: Many CEOs would not make it through the financial crisis. Stan O'Neal at Merrill and Chuck Prince at Citigroup both exit, taking monster severance packages with them. O'Neal, for one, walked out with $US161.5 million.
DEC. 11, 2007: The FOMC reduces the federal funds rate to 4.25% and cuts the primary credit rate to 4.75%.
MARCH 16, 2008: JPMorgan Chase buys Bear Stearns for $US2 a share in a fire sale (later it would be $US10 a share). The Federal Reserve finances the deal, providing $US30 billion so Bear doesn't go bankrupt.
2008: Insurers like MBIA, who have written against the failure of CDOs, get downgraded and collapse. Hedge funder Bill Ackman would reportedly make his investors over $US1 billion on a short position.
SEPT. 16, 2008: For only the second time in history, a money market fund 'breaks the buck' and reports share value below $US1. Americans run on money market funds, long considered safe havens, en masse. $US140 billion has been withdrawn year-to-date.
SEPT. 29, 2008: The U.S. House of Representatives defeats a proposed $US700 billion emergency bailout package, 228-205. Stocks plunge 788 points as the votes are counted live.
OCT. 13, 2008: Treasury Secretary Hank Paulson sits down with nine major bank CEOs. When they leave the room hours later, the federal government has taken a huge equity position in Wall Street. The total bailout package looks more like $US2.25 trillion, well more than the original $US700 billion available.
OCT. 16, 2008: Warren Buffett authors a New York Times op-ed called 'Buy American. I Am.' He gets absolutely crushed by critics when markets crash further. Rising stock prices in the post-crisis years would later vindicate him.
OCT 2008: Commentators wonder if this is the end of life as we know it. 'The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism,' wrote The Washington Post's Anthony Faiola. Simon Jenkins at The Guardian called this line of thinking 'journalistic wish-fulfillment and glee.'
Eventually, after extraordinary bailouts from the Fed and Congress, the market bottomed and the economy slowly recovered.
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