All financial regulators have got to wake up to where we are at the present moment" 21 September 2008 "I am very angry that we can have a situation where a bank can be forced into a merger by basically a bunch of short-selling spivs and speculators in the financial markets. The UK's largest mortgage lenders, HBOS, is rescued by Lloyds TSB after a huge drop in its share priceĪlex Salmond, leader of the Scottish National Party, at the time Heavily exposed to the sub-prime mortgage market, the American bank Lehman Brothers files for bankruptcy, prompting worldwide financial panicĭick Fuld, the final chairman and CEO of the bank, was the focus of protesters' anger when he testified before the US House of Representatives about the effects of the collapse of Lehman Brothers Photograph: Linda Nylind for the Guardian 15 September 2008
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This is the biggest rescue operation since the credit crunch began – but it probably won't be the last"Ī lot from the Lehman Brothers: Artwork and Ephemera" sale at Christie's of London in September 2010, on the second anniversary of the investment bank's bankruptcy.
CRASH TIME 4 THE SYNDICATE 2010 MAC
"Hank Paulson, secretary of the US treasury, did not take Fannie Mae and Freddie Mac into public ownership because he has become a born-again socialist: he acted because he feared a systemic global financial crisis that would prompt the biggest depression since the 1930s. Larry Elliott, Guardian economics editor, writing in the aftermath The US government bails out Fannie Mae and Freddie Mac – two huge firms that had guaranteed thousands of sub-prime mortgages Hank Paulson, US Treasury secretary from 2006 to 2009, in an interview with the Wall Street Journal: "I do believe that the worst is likely to be behind us" 7 September 2008 It is the biggest casualty of the crisis so far The investment bank Bear Stearns is bought out by JP Morgan. It will be nearly four years before it returns to the private sector 14 March 2008 We asked them about modifying the loan, but they didn't want to work out anything with us" 17 February 2008Īfter the failure of two private takeover bids, Alistair Darling nationalises Northern Rock in what he claims will be a temporary measure. It became hard to keep up with the mortgage payments.
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"The house cost $312,000 and we borrowed the whole amount. Sandra Michel, a nurse, nearly lost her home in 2008 – until Boston Community Capital stepped in. Photograph: Justin Sullivan/Getty Images 24 January 2008Īnalysts announce the largest single-year drop in US home sales in a quarter of a century Half of us were outside one, and the rest of us were outside the other"Ībandoned house in Antioch, California. Secondly, there were two McDonald's outside Liverpool Street. Firstly, Robert Peston had already broken the story about Northern Rock.
CRASH TIME 4 THE SYNDICATE 2010 WINDOWS
Instead of coming to the bank, where we would be photographed coming in the front door, we were all to meet outside the McDonald's in Liverpool Street where we would be picked up in a people-carrier with darkened windows and driven in through the back of the bank. "At about 6.30pm, we were told there would be a meeting of court. It is the first run on a British bank for 150 yearsĪ member of the court of the Bank of England, who asked not to be named This sparks fears that the bank will shortly go bankrupt – prompting customers to queue round the block to withdraw their savings. But now that demand for securitised mortgages has fallen, Northern Rock faces a liquidity crisis and it needs a loan from the British government. It marks the cut-off point between 'an Edwardian summer' of prosperity and tranquillity and the trench warfare of the credit crunch – the failed banks, the petrified markets, the property markets blown to pieces by a shortage of credit" 14 September 2007īritish bank Northern Rock has borrowed large sums of money to fund mortgages for customers, and needs to pay off its debt by reselling (or "securitising") those mortgages in the international capital markets. Larry Elliott, economics editor, said: "As far as the financial markets are concerned, Aughas all the resonance of August 4 1914. Adam Applegarth (right), Northern Rock's chief executive, later says that it was "the day the world changed" It is the first major bank to acknowledge the risk of exposure to sub-prime mortgage markets.
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BNP Paribas freeze three of their funds, indicating that they have no way of valuing the complex assets inside them known as collateralised debt obligations (CDOs), or packages of sub-prime loans.