TIMELINE - Financial chaos shakes markets

Wed Oct 8, 2008 1:37pm BST
 
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(Reuters) - Here is a chronology of a month of global market chaos which has claimed some of the world's best known financial institutions as victims.

September 14/15 - Investment bank Lehman Brothers Holdings Inc files for bankruptcy protection; Merrill Lynch & Co Inc to be taken over by Bank of America Corp.

September 16 - Federal Reserve announces plan for $85 billion loan to American International Group Inc in return for 80 percent stake in the insurer; Britain's Barclays buys parts of Lehman's North American assets for $1.75 billion.

September 17 - British bank Lloyds TSB Group Plc agrees to rescue rival HBOS Plc, scooping up Britain's biggest home loan lender in an all-share deal.

September 18 - The UK Financial Services Authority imposes a temporary ban on short-selling financial stocks, a move echoed in other centres.

September 19 - U.S. Treasury Secretary Henry Paulson calls for the government to spend billions of dollars to take toxic mortgage assets off financial companies to restore financial stability. News of the plan helps world stock markets soar.

September 20 - Details emerge of the $700 billion U.S. plan.

September 21 - Goldman Sachs Group Inc and Morgan Stanley become bank holding companies regulated by the Fed.

September 22 - Nomura Holdings Inc says it will buy Lehman's franchise in Asia Pacific and acquires Lehman's business in Europe. Mitsubishi UFJ Financial agrees to buy up to 20 percent of Morgan Stanley for $8.5 billion.  Continued...

 
Detail showing a commercial U.S. Dollar rate against British Sterling is displayed in central London in this file photo December 1, 2006.  REUTERS/Toby Melville
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