Timeline Global Markets2

THE GLOBAL FINANCIAL CRISIS A seesaw is a long, narrow board suspended in the middle so that, as one end goes up, the other goes down. The origins of the word come from the visibility gained and lost as players take turns giving each other a vantage point. The board is balanced in the exact center. Persons seated on each end and take turns pushing their feet against the ground to lift their end into the air. Playground seesaws usually have handles for the riders to grip as they sit facing each other. One problem with the seesaw's design is that if a child allows himself/herself to hit the ground suddenly after jumping, or exits the seesaw at the bottom, the other child may fall and be injured. For this reason, seesaws are often mounted above a soft surface.

10/17/2008

Global Crisis: Timeline Part I provides a timeline of major events in the crisis 20072008. Part II lists financial institutions with major writedowns, while Parts III and IV look at the fates of these institutions (in table form). Part V includes useful graphics and tables.

The Global Financial Crisis

The Global Financial Crisis 2007-2008 TIMELINE

TIMELINE OF EVENTS………………………………………………………2 2007: SUB-PRIME MARKET COMPLICATIONS ..................................................................... 2 APRIL-AUGUST 2007: SUB-PRIME CONTAGION ................................................................. 2 AUGUST 2007: THE SCOPE OF THE CRISIS EXPANDS ......................................................... 2 SEPTEMBER 2007: A BANK RUN ......................................................................................... 2 OCTOBER 2007: WRITEDOWNS ........................................................................................... 3 OCTOBER-NOVEMBER 2007: MORTGAGE AND DERIVATIVES MARKETS WORSEN .......... 3 DECEMBER 2007: OFFICIAL INTERVENTIONS ..................................................................... 3 DECEMBER 2007: BOND INSURERS FALTER ........................................................................ 3 JANUARY 2008: RUNS ON FUNDS AND MARKETS............................................................ 3 FEBRUARY - MARCH 2008: LARGE INSTITUTIONS FAIL ..................................................... 3 APRIL - JUNE 2008: LOOKING FOR CASH .......................................................................... 4 JULY 2008: MARKET MAKERS FAIL .................................................................................... 4 AUGUST - SEPTEMBER 2008: NO MORE INVESTMENT BANKING ...................................... 5 OCTOBER 2008: THE BAILOUTS .......................................................................................... 5

FINANCIAL INSTITUTIONS WITH MAJOR WRITEDOWNS……………7 BANKS' SUBPRIME-RELATED LOSSES SURGE TO $591 BILLION….9 STATUS OF FIRMS UNABLE TO RAISE PRIVATE CAPITAL SUFFICIENT TO COVER WRITEDOWNS………………………………………………….13 INTERNATIONAL RESCUE PACKAGES: GRAPHIC…………………….16

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The Global Financial Crisis

TIMELINE OF EVENTS1 2007: SUB-PRIME MARKET COMPLICATIONS The US housing market weakens as housing prices fall and borrowers increasingly default on sub-prime loans. Governmental review of rating mechanisms for subprime lending and related derivatives instruments reveals that instrument rating formulas were nearly identical to those employed in the traditional mortgage market, and incorrectly assumed similar rates of rescheduling and default.

APRIL-AUGUST 2007: SUB-PRIME CONTAGION April: New Century Financial, which specialises in sub-prime mortgages, files for Chapter 11 bankruptcy protection. New Century’s collapse begins to impact banks which had purchased New Century instruments around the world. July: Bear Stearns informs investors that they will receive little or none of the money invested in two of its hedge funds, following a refusal by other banks to assist in a bailout.

AUGUST 2007: THE SCOPE OF THE CRISIS EXPANDS 9 August 2007: BNP Paribas freezes investor withdrawals from two hedge funds, claiming that the assets cannot be valued accurately due to a "complete evaporation of liquidity" in the market. The European Central Bank pumps 95bn euros (£63bn) to try to improve liquidity, adding another 108.7bn euros in the following days. The Fed, the Bank of Canada and the Bank of Japan also launch interventions. 17 August: The Fed continues to follow a “cheap money” solution, cutting its bank lending rate 50 basis points to 5.75%. 28 August: German regional bank Sachsen Landesbank nears sub-prime based collapse, and is sold to Landesbank Baden-Wuerttemberg.

SEPTEMBER 2007: A BANK RUN 3 September: German corporate lender IKB announces a $1bn loss on investments linked to the US sub-prime market. IKB’s difficulties lead to an investor run – the first in a long series of such withdrawals (see Table II). 4 September: LIBOR hits 6.7975%. Banks restrain lending out of concerns about one other’s solvency, or are themselves unable to secure financing. 13 September: Northern Rock Bank (UK) is granted emergency financial support from the Bank of England, in the latter's role as lender of last resort. On 14 September, depositors withdraw £1bn in the UK’s biggest bank run for more than a century, until the government issues a depository guarantee. 18 September: The Fed cuts its main interest rate to 4.75%. 19 September: The Bank of England announces that it will auction £10bn, reversing a prior no-injection policy. 1

Compiled from the Financial Times, Forbes, BBC and CreditWriteDowns.com. Page 2

The Global Financial Crisis

OCTOBER 2007: WRITEDOWNS 1 October: UBS (Switzerland) announces $3.4bn in losses from sub-prime related investments, alongside the resignations of its chairman and chief executive. Citigroup unveils a sub-prime related loss of $3.1bn, with an additional $5.9bn written down in following weeks. Within six months, its stated losses amount to $40bn. 30 October: Merrill Lynch's chief resigns after a $7.9bn bad debt exposure is announced.

OCTOBER-NOVEMBER 2007: MORTGAGE AND DERIVATIVES MARKETS WORSEN In the US and UK, default rates continue to rise. Spain’s covered bond markets begin to attract concern.

DECEMBER 2007: OFFICIAL INTERVENTIONS 6 December: US President George W Bush outlines a tax relief proposal to assist a million homeowners facing foreclosure. The Bank of England cuts interest rates by a quarter of one percentage point to 5.5%. 13 December: The Fed coordinates interbank intervention in short-term banking institution financing by five leading central banks. The Bank of England participates despite prior resistance, calling intervention an attempt to "forestall any prospective sharp tightening of credit conditions." LIBOR temporarily drops and stabilizes. 17 December: Another round of central banks funding is announced. The Fed announces a $20bn auction and the European Central Bank auctions $500bn the next day.

DECEMBER 2007: BOND INSURERS FALTER 19 December: Standard and Poor's downgrades several larger monoline insurers (specialists in bond insurance who basically provide credit default swaps). Banks are forced to write down further, as investor concerns about the banks’ insurers’ solvency grows.

JANUARY 2008: RUNS ON FUNDS AND MARKETS 18 January: Scottish Equitable delays funds withdrawals by up to 12 months, as investors rush to withdraw from its commercial property funds. SE claims necessity based on the sub-prime mortgage collapse and rising interest rates. 21 January: Global stock markets take their greatest single-day hits since 11 September 2001. 22 January: The Fed drops rates to 3.5%, leading to a rebound in global stock markets. 31 January: UK bond insurer MBIA announces a loss of $2.3bn, blaming the US sub-prime mortgage crisis.

FEBRUARY - MARCH 2008: LARGE INSTITUTIONS FAIL 10 February: Leaders from the G7 group of industrialised nations say worldwide losses stemming from the collapse of the US sub-prime mortgage market could reach $400bn. 17 February: The UK nationalizes Northern Rock Bank.

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The Global Financial Crisis

7 March: The Fed makes $200bn of funds available to banks and other institutions to try to improve liquidity in the markets. 11 March: The Dutch government approves break-up plan for ABN Amro, issuing a “declaration of no objection” to a plan proposed by Royal Bank of Scotland, Santander of Spain and Fortis, the Belgo-Dutch group. 17 March: Bear Stearns is acquired by JP Morgan Chase for $240m, backed by $30bn of central bank loans. In the first quarter of 2007, Bear Stearns was valued at $34 bn.

APRIL - JUNE 2008: LOOKING FOR CASH 2 April: Moneyfacts, which monitors financial products, says 20% of mortgage products have been withdrawn from the UK market in the previous seven days. The 100% mortgage disappears on 7 April, when Abbey Financial withdraws the last home loan available without a deposit. 8 April: The IMF warns that potential losses from the credit crunch could reach above $1 trillion, as effects spread into other sectors including commercial property, consumer credit, and company debt. “The effects of the credit crunch are likely to be broader, deeper and more protracted than previously expected.” 21 April: The Bank of England announces a £50bn plan under which struggling banks may swap mortgage debts for secure government bonds. 22 April: Royal Bank of Scotland, struggling to balance its losses, announces a £12bn rights issue, while writing down £5.9bn over the second quarter of 2008. 2 May: More than 850 UK companies went into administration between January and March – with retail and construction firms hardest hit. 22 May: UBS (Swiss) launches a $15.5bn rights issue to cover some of its $37bn losses on mortgage-related assets. 19 June: The FBI arrests 406 people, including brokers and housing developers, as part of an investigation into mortgage frauds worth $1bn. Two former Bear Stearns employees face criminal charges related to the collapse of two hedge funds linked to sub-prime mortgages, on allegations of non-disclosure to investors. 20 June: Derivatives broker MF Global, spun out of U.K. hedge fund manager MAN Group in July 2007, seeks $300 million in additional financing that will be dilutive to common shareholders, and lowers revenue and profit guidance. 25 June: Barclays announces a £4.5bn share issue to balance its books. The Qatar Investment Authority, a sovereign wealth fund, will invest £1.7bn in Barclay’s, giving it a 7.7% share in the business.

JULY 2008: MARKET MAKERS FAIL 13 July: US mortgage lender IndyMac collapses. 14 July: Financial authorities announce that the debts of Fannie Mae and Freddie Mac, owners or guarantors of $5 trillion worth of home loans, will be those of the United States.

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The Global Financial Crisis

21 July: Halifax Bank of Scotland (HBOS) investors do not participate in its £4bn rights issue, forcing the issue's underwriters to buy unsold shares. In the following days, HBOS announces that profits for the first half of 2008 fell 72% to £848m. Bad debts rose 36% to £1.31bn as customers failed to repay loans.

AUGUST - SEPTEMBER 2008: NO MORE INVESTMENT BANKING 4 August: HSBC (UK) announces a 28% fall in half-year profits. 29 August: Bradford and Bingley (UK) posts losses of £26.7m for the first half of 2008. 7 September: Mortgage lenders Fannie Mae and Freddie Mac are placed under conservatorship. 10 September: Lehman Brothers posts a loss of $3.9bn for June-August 2008. 15 September: Lehman Brothers files for Chapter 11 bankruptcy protection. Merrill Lynch agrees to be acquired by Bank of America for $50bn. 16 September: The Fed announces an $85bn rescue package for AIG to save it from bankruptcy, in exchange for an 80% public stake in the firm. 17 September: HBOS (UK) is acquired by Lloyds TSB for £12bn, after a run on HBOS shares. 25 September: Washington Mutual is shut down by regulators and sold to JPMorgan Chase. 28 September: European banking and insurance giant Fortis is partially nationalized to ensure its survival, as Netherlands, Belgium and Luxembourg agree to inject 11.2bn euros ($16.1bn). 29 September: Bradford & Bingley (UK) is nationalized. The British government assumes the bank's £50bn mortgages and loans, while its savings operations and branches are sold to Spain's Santander. The Icelandic government nationalizes Glitnir bank which, like Bear Stearns earlier, collapsed in a day after being unable to buy back its assets after overnight repo market financing. Wachovia is bought by Citigroup; Citigroup will absorb up to $42bn of Wachovia losses. 30 September: Dexia (European) is bailed out, as the Belgian, French and Luxembourg governments announce a 6.4bn euros ($9bn) injection. Ireland announces a universal and 100% deposit guarantee scheme, for two years.

OCTOBER 2008: THE BAILOUTS 1 October: The EU announces an inquiry into Ireland's full guarantee scheme under Community competition law. 3 October: The US House of Representatives passes HR 1424, a $700bn staggered bailout package. 6 October: Germany announces a 50bn euro ($68bn) injection into Hypo Real Estate, alongside private banks. The German government says it will not pass depository guarantees. Denmark announces a 100% savings guarantee. Sweden increases its protection levels. Iceland announces a banking sector stabilization plan, under which the country's largest banks agree to sell off some of their foreign assets. 7 October: Iceland nationalizes Landsbanki, owner of a number of European savings institutions. Later in the week, reports emerged of plans to secure Kaupthing bank through merger or government financing.

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8 October: UK government announces a £50bn banking sector rescue package. The Federal, European Central Bank (ECB), Bank of England, and the central banks of Canada, Sweden and Switzerland make emergency interest rate cuts of half a percentage point. The Fed cut its base lending rate to 1.5%, the ECB to 3.75%, and the Bank of England to 4.5%. 10 October: Asian, European and US markets crash. 11 October: The G7 nations issue a five-point plan of "decisive action" to unfreeze credit markets, after a meeting in Washington. 13 October: Royal Bank of Scotland (RBS), Lloyds TSB and HBOS will receive £37bn in UK governmental injections. 14 October: The US will purchase $250bn in stakes in a wide variety of banks. Concerns rise about sovereign default, particularly with respect to Pakistan, Argentina, Ukraine, Latvia, Kazakhstan, Turkey and Iceland. 15 October: Figures for US retail sales in September show a fall of 1.2%, the biggest monthly decline in more than three years, as consumer confidence drops. 16 October: Hungary and Ukraine approach the IMF for assistance; to date, the IMF has agreed to support relief in Hungary. Hungary’s problems stem from foreign currency loans and big budget deficits. Ukraine’s banks face difficulties repaying foreign credits as its current account widens. 17 October: Eight European banks form a preferred interbank lending consortium, the Unico Banking Group, comprised of: Credit Agricole, DZ Bank, Iccrea Holding, Pohjola Bank, Rabobank and Raiffeisen Zentralbank, and Raiffeisen Switzerland. 18 October: Analysts predict Iceland will seek IMF assistance over the weekend, as Russia remains cool to its requests for emergency lending. With Iceland on the edge of bankruptcy, Iceland adopted banking legislation which gives the state broad banking operations powers, including state compulsion of mergers and declaration of bankruptcy by a bank. Other European nations are threatening legal action based on the terms of its depository guarantees, alleging discrimination against foreign holders. The krona has lost half its value against other currencies and no longer is being traded. In other restrictions, Icelandic citizens’ use of credit cards abroad has been limited, corporations may only foreign currency to import fuel, food or medicine, and individuals may only obtain foreign currency with an international airline ticket. Iceland had established itself in recent years as an offshore banking haven for continental Europe, and banking services comprised the largest sector of its economy in 2008.

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The Global Financial Crisis

FINANCIAL INSTITUTIONS WITH MAJOR WRITEDOWNS2

ACA

Fannie Mae

Morgan Stanley

Accredited Home Lenders

Fifth Third Bancorp

Munich Re

AIG

First Horizon

National Australia Bank

Alliance & Leicester

Fortis

National Bank of Canada

Allianz

Freddie Mac

National City

Ambac

Fremont General

Natixis

American Express

Gateway

New Century Financial

American Home Mortgage

GE (WMC Mortgage)

Northern Rock

ANZ Bank

GMAC

Novastar Financial

BankAtlantic

Goldman Sachs

Peloton Partners

Bank of America

H&R Block

PMI Group

Bank of China

Hannover Re

Postbank

Bank of Montreal

HBOS

Radian Group

Bank United

HSBC

RBC

Barclays

Huntington Bancshares

RBS

Basis Capital

IKB

Regions Financial

Blackstone

IndyMac

Sachsen Landesbank

BNP Paribas

ING

Scotia Bank

Bradford and Bingley

Japan

Société Générale

Capital One

JP Morgan Chase

SunTrust Bank

Carlyle Group

Kensington

Swiss Re

CIBC

KeyCorp

Triad

Citigroup

Legg Mason

UBS

Columbia Bancorp

Lehman Brothers

US Bancorp

2

From http://www.creditwritedowns.com/2008/05/credit-crisis-timeline.html. Page 7

The Global Financial Crisis

Comerica

Lloyds TSB

Wachovia

Commerzbank (incl. Dresdner)

M&T Bank

Washington Mutual

Credit Agricole

Marshall and Ilsley

Wells Fargo

Credit Suisse

MBIA

WestLB

Deutsche Bank

Merrill Lynch

Zions

Duesseldorfer Hypothekenbank

MGIC

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The Global Financial Crisis

BANKS' SUBPRIME-RELATED LOSSES SURGE TO $591 BILLION: TABLE3 The following table shows the $590.8 billion in asset writedowns and credit losses at more than 100 of the world's biggest banks and securities firms as well as the $434.2 billion capital raised to cope with them. Firm

Writedown & Loss

Capital Raised

Spread

Citigroup Inc.*

60.8

71.1

10.3

Wachovia Corporation*

52.7

11.0

-41.7

Merrill Lynch & Co.

52.2

29.9

-22.3

Washington Mutual Inc.

45.6

12.1

-33.5

UBS AG

44.2

28.0

-16.2

HSBC Holdings Plc

27.4

5.1

-22.3

Bank of America Corp.

21.2

20.7

-0.5

JPMorgan Chase & Co.

18.8

19.7

0.9

Morgan Stanley*

15.7

14.6

-1.1

IKB Deutsche Industriebank AG

14.8

12.2

-2.6

Royal Bank of Scotland Group Plc

14.1

23.1

9

Lehman Brothers Holdings Inc.

13.8

13.9

0.1

Credit Suisse Group AG

10.4

3.0

-7.4

Deutsche Bank AG

10.4

6.1

-4.3

Wells Fargo & Company

10.0

5.8

-4.2

Credit Agricole S.A.

8.8

8.5

-0.3

Barclays Plc

7.6

17.9

10.3

Canadian Imperial Bank

7.2

2.8

-4.4

Note, AR: The author has edited a table originally appearing in Yalman Onaran and Dave Pierson, Banks' Subprime-Related Losses Surge to $591 Billion: Table, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSlW.imTKzY8 (Bloomberg, 29 September 2008), retaining excerpts of the original text. Specifically, I have added the fourth column, Spread, to indicate which firms have faced rescue or bankruptcy – or are likely do so in the near future. 3

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The Global Financial Crisis

of Commerce Fortis*

7.1

23.1

16

Bayerische Landesbank

6.9

0.0

-6.9

HBOS Plc

6.8

7.2

0.4

ING Groep N.V

6.7

4.6

-2.1

Societe Generale

6.6

9.4

2.8

Mizuho Financial Group Inc.

6.1

0.0

-6.1

National City Corp.

5.4

8.9

3.5

Natixis

5.3

11.8

6.5

Indymac Bancorp Inc

4.9

0.0

-4.9

Goldman Sachs Group Inc.

4.9

10.6

5.7

Lloyds TSB Group Plc

4.7

4.8

0.1

Landesbank BadenWurttemberg

4.7

0.0

-4.7

WestLB AG

4.6

7.2

2.6

Dresdner Bank AG

3.9

0.0

-3.9

BNP Paribas

3.9

0.0

-3.9

E*TRADE Financial Corp.

3.6

2.4

-1.2

HSH Nordbank AG

3.5

1.8

-1.7

Rabobank

3.5

0.0

-3.5

Nomura Holdings Inc.

3.4

1.2

-2.2

Bear Stearns Companies Inc.

3.2

0.0

-3.2

Bank of China Ltd

3.1

0.0

-3.1

DZ Bank AG

2.6

0.0

-2.6

Landesbank Sachsen AG

2.5

0.0

-2.5

UniCredit SpA

2.5

0.0

-2.5

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The Global Financial Crisis

Commerzbank AG

2.3

0.0

-2.3

ABN AMRO Holding NV

2.2

0.0

-2.2

Royal Bank of Canada

2.2

0.0

-2.2

Fifth Third Bancorp

1.9

2.6

0.7

Dexia SA

1.6

0.0

-1.6

Mitsubishi UFJ Financial Group

1.6

1.6

0

Bank Hapoalim B.M.

1.5

2.5

1

Marshall & Ilsley Corp.

1.4

0.0

-1.4

Alliance & Leicester Plc

1.3

0.0

-1.3

U.S. Bancorp

1.3

0.0

-1.3

Bank of Montreal

1.2

0.0

-1.2

KeyCorp

1.2

1.6

0.4

Groupe Caisse d'Epargne

1.2

0.0

-1.2

Hypo Real Estate Holding AG*

1.1

0.0

-1.1

Sovereign Bancorp Inc.

1.0

1.9

0.9

Gulf International Bank

1.0

1.0

0

Sumitomo Mitsui Financial Group

1.0

4.9

3.9

Sumitomo Trust and Banking Co.

0.8

1.0

0.2

National Bank of Canada

0.7

1.0

0.3

DBS Group Holdings Limited

0.2

1.1

0.9

Other European Banks*

9.1

2.9

-6.2

Other Asian Banks

5.5

8.9

3.4

Other US Banks

2.9

4.8

1.9

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The Global Financial Crisis

Other Canadian Banks

0.4

0.0

-0.4

TOTAL

590.8

434.2

-156.6

All the charges stem from the collapse of the U.S. subprime-mortgage market and reflect credit losses or writedowns of mortgage assets that aren't subprime, as well as charges taken on leveraged-loan commitments since the beginning of 2007. They are net of financial hedges the firms used to mitigate losses and pre-tax figures unless the bank only provided after-tax numbers. Credit losses include the increase in the provisions for bad loans, impacted by the rising defaults in mortgage payments. Capital raised includes common stock, preferred shares, subordinated debt and hybrid securities which count as Tier 1 or Tier 2 capital as well as equity stakes or subsidiaries sold for capital strengthening. Capital data begins with funds raised in July 2007. All numbers are in billions of U.S. dollars, converted at today's exchange rate if reported in another currency.

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The Global Financial Crisis

STATUS OF FIRMS UNABLE TO RAISE PRIVATE CAPITAL SUFFICIENT TO COVER WRITEDOWNS

Firms

Status

Source

Wachovia Corporation*

Acquired

See above

Merrill Lynch & Co.

Acquired

See above

Washington Mutual Inc.

Acquired

See above

UBS AG

Government Financing

See above

HSBC Holdings Plc

Government Financing

See above

Bank of America Corp.

Solvent, acquisition of Merrill Lynch cleared

http://news.smh.com.au/business/bank-of-america-merrill-deal-cleared20081016-51pg.html

Morgan Stanley*

Acquired

See above

IKB Deutsche Industriebank AG

German bailout

http://online.wsj.com/article/SB122375258121026119.html?mod=googl enews_wsj

Credit Suisse Group AG

Recent capital raise

http://www.forbes.com/markets/economy/2008/10/16/credit-suissecloser-markets-equity-cx_ll_lal_1016markets43.html

Deutsche Bank AG

NTR

Not participating in rescue

Wells Fargo & Company

Fed 250bn bank injection

http://www.time.com/time/magazine/article/0,9171,1851140,00.html

Credit Agricole S.A.

UNICO participant

See above

Canadian Imperial Bank of Commerce

NTR

Stock performing well; general trend among Canadian financial institutions

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The Global Financial Crisis

Bayerische Landesbank

Exploring merger with Landesbank BadenWurttemberg

http://www.forbes.com/feeds/ap/2008/10/13/ap5543393.html

ING Groep N.V

NTR

Mizuho Financial Group Inc.

NTR

Indymac Bancorp Inc

Nationalized

See above

Landesbank BadenWurttemberg

Exploring merger with Bayerische Landesbank

http://www.forbes.com/feeds/ap/2008/10/13/ap5543393.html

Dresdner Bank AG

Allianz has agreed to sell Dresdner to Commerzbank

http://www.ft.com/cms/s/0/6171b42e-9ba7-11dd-ae76000077b07658.html

BNP Paribas

Struggling, bailout

See above

E*TRADE Financial Corp.

NTR

HSH Nordbank AG

Rating cut

Rabobank

UNICO participant

See above

Nomura Holdings Inc.

Acquiring Lehman’s AsiaPac ops

http://www.japancorp.net/Article.Asp?Art_ID=20305

Bear Stearns Companies Inc.

Acquired

See above

Bank of China

Government

http://www.iht.com/articles/ap/2008/10/17/america/Sovereign-

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The Global Financial Crisis

Ltd

support

Wealth-Funds-Investment.php

DZ Bank AG

UNICO participant

See above

Landesbank Sachsen AG

Sold to See above Landesbank BadenWuerttemberg

UniCredit SpA

2.5

0.0

Commerzbank Acquires AG Dresdner

http://www.ft.com/cms/s/0/6171b42e-9ba7-11dd-ae76000077b07658.html

ABN AMRO Holding NV

Liquidated in ongoing assets sale

http://www.ft.com/cms/s/0/931024ea-ef98-11dc-8a170000779fd2ac.html

Royal Bank of Canada

NTR

Dexia SA

Bailout

Marshall & Ilsley Corp.

NTR

Alliance & Leicester Plc

Acquired by Santander

U.S. Bancorp

NTR

Bank of Montreal

NTR

Groupe Caisse d'Epargne

600m euros in unauthorized trading losses; under investigation; exploring merger with Banque Populaire

http://www.nytimes.com/2008/10/18/business/worldbusiness/18frenchb ank.html?ref=europe

Hypo Real Estate Holding AG*

German bailout

See above

See above

http://www.ft.com/cms/s/0/6171b42e-9ba7-11dd-ae76000077b07658.html

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GRAPHICS AND TABLES4

BANKS AFFECTED BY THE GLOBAL CRISIS - 2008 Bank

Date

Status

Fannie Mae

07 Sep

Nationalised

Freddie Mac

07 Sep

Nationalised

Lehman Bros

15 Sep

Collapsed

Merrill Lynch

15 Sep

Taken over

AIG

16 Sep

Part-nationalised

HBOS

17 Sep

Taken over

WaMu

25 Sep

Collapsed and sold

Fortis

28 Sep

Nationalised

Bradford & Bingley

29 Sep

Nationalised

Wachovia

29 Sep

Taken over

Glitnir

29 Sep

Nationalised

Hypo Real Estate

06 Oct

Rescue package

RBS

13 Oct

Part-nationalised

Lloyds TSB

13 Oct

Part-nationalised

4

http://news.bbc.co.uk/2/hi/business/7644238.stm. Page 17