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Global Turmoil Credit Crisis

Global Turmoil

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Page 1: Global Turmoil

Global Turmoil Credit Crisis

Page 2: Global Turmoil

SEPTEMBER 14, 2008

Investment back Lehman brothers files for bankruptcy protection, rival Merrill Lynch

agrees to be taken over by bank of America.

Page 3: Global Turmoil

SEPTERMEBER 16, 2008

The federal reserve bank of new your will lend up to $85 billion to AIG to save the company from disorderly failure, Under the two-year facility, US government will receive a 79.9 percent

equity interest in the insurer.

Page 4: Global Turmoil

SEPTEMBER 18, 2008

British bank Lloyds TSB buys rival HBOS scooping up Britain’s biggest home loan

lender in an all-share deal which values HBOS at over 12 billion pounds.

Page 5: Global Turmoil

SEPTEMBER 19, 2008

Is he as smart as he looks?

He is in charge of the project to prevent more banks and other financial

institutions from collapsing, and in general to try to limit the economic

crisis. Do you trust him with this responsibility?

US Treasury Secretary Henry Paulson calls for the government to spend hundreds

of billions of dollars to take toxic mortgage assets off the books of

financial firms to restore stability. The news rallies shares in Britain and

America.

Page 6: Global Turmoil

SEPTEMBER 20, 2008

Bush Administration asks Congress for $700 billion to bail out firms burdened with bad

mortgage debt.

Page 7: Global Turmoil

SEPTEMBER 24, 2008

Warren Buffett’s Berkshire Hathaway Inc invests $5 billion in Goldman Sachs Group Inc.

Goldman’s shares rose 6 percent.

Page 8: Global Turmoil

SEPTEMBER 26, 2008

Washington Mutual is closes by the U.S. government, in by far the largest failure of a U.S bank, and its banking assets are sold to

JPMorgan Chasefor $1.9 billion.

Page 9: Global Turmoil

SEPTEMBER 29, 2008

European governments scramble to shore up banks, rescuing Belgium’s Fortis, Bradford & Bingley in the UK and Germany’s Hypo Real

Estate.

Page 10: Global Turmoil

SEPTEMBER 29, 2008

House of Representatives rejects $700 billion bailout plan, sending global markets sliding.

Page 11: Global Turmoil

OCTOBER 03, 2008

The House of Reps passes a revised bailout plan two days after the Senate. Wells Fargo says it

has agreed to buy Wachovia for about $16 billion, thwarting a planned Citigroup deal.

Page 12: Global Turmoil

OCTOBER 7, 2008

Iceland is forced to prop up its currency, take over Landsbanki, its second-biggest bank, and ask Russia for a loan of 4 billion Euros to avoid

“national bankruptcy”

Page 13: Global Turmoil

OCTOBER 08, 2008

Britain will inject 50 billion pounds into the country’s banks following dramatic falls in the

share prices of HBOS and RBS and other banks.

Page 14: Global Turmoil

OCTOBER 10, 2008

Stocks dive 10 percent in Tokyo and 9 percent in London, but the Dow ends just 1.5 lower

after a record day of volatility.

Page 15: Global Turmoil

OCTOBER 13, 2008

Shares roar back, scoring record gains on Wall Street, after European governments pledge

more than $1.3 trillion to bolster banks.

Page 16: Global Turmoil

OCTOBER 14, 2008

The Treasury says it will inject $250 billion into U.S. banks by purchasing preferred shares.

Nine banks agree to accept government stakes in return from the money.