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Timeline

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Timeline of a Crisis
Below, see key dates from the stock, bond and commodities markets as U.S. investment banks and the Federal Reserve struggled to contain the fallout of the mortgage meltdown.
* * *
June 2007 | July | August | September | October | November | December | 2008 | January | February | March
2007
June 8 -- Amid growing concern about the housing market's reliance on subprime loans -- those made to people with poor credit -- the Dow industrials plunge 198.94 points, or 1.5%, to 13266.73. Treasurys see some of their sharpest losses in years, pushing the yield on 10-year notes up to 5.10% amid simmering inflation jitters.
June 13 -- U.S. bond yields hit a five-year high as investors continue to sell Treasurys, with the yield on the benchmark 10-year note rising to 5.249%.
June 14 -- Bear Stearns reports a 10% decline in quarterly earnings as the mortgage market shows signs of cracking. Chief Financial Officer Sam Molinaro says, ``We are impacted in a weaker mortgage market until that industry turns around.''
June 18 -- Reports say Merrill Lynch seized collateral from a Bear Stearns hedge fund invested heavily in subprime loans.
June 22 -- Bear Stearns commits $3.2 billion in secured loans to bail out its High-Grade Structured Credit Fund, says company's troubles are "relatively contained."
June 22 -- Blackstone Group's initial public offering is priced at $31 a share, raising as much as $4.6 billion; the next day, on the first day of trading, the stock jumps 13%.
June 23 -- Bear Stearns agrees to lend as much as $3.2 billion to one of its two troubled hedge funds.
Associated Press
Federal Reserve Chairman Ben Bernanke
June 28 -- Federal Reserve policy makers, on the second day of a two-day meeting, announce the key federal-funds rate will remain unchanged at 5.25%.
July 2 -- BCE Inc. agrees to be acquired by the investment arm of Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners for $32.6 billion. It is the largest private-equity buyout in history.
July 9 -- After a series of setbacks, including the collapse of an internal hedge fund, Swiss financial firm UBS removes Chief Executive Peter Wuffli. Marcel Rohner, the deputy CEO and head of private-banking and wealth-management operations, succeeds him.
July 13 -- The Dow Jones Industrial Average surges 283.86 points, or 2.1%, to a record 13861.73, its biggest gain in nearly four years
July 14 -- Oil climbs to almost $74 a barrel. The Dow industrials hit a record for a second straight session, rising 45.52 points to 13907.52 despite a jump in oil prices.
July 17 -- Bear Stearns tells clients that the assets in one of its troubled funds are essentially worthless, while those in the other are worth 9% of what their value was at the end of April.
July 20 -- The Dow industrials cross the 14000 milestone for the first time by rising 82.19 points to 14000.41, lifted by IBM's strong earnings
July 25 -- Countrywide Financial says profit slipped 33%, dragged down by losses on certain types of prime mortgage loans. Countrywide slashes its 2007 earnings forecast, citing expectations of "increasingly challenging" housing and mortgage markets
Aug. 1 -- Bear Stearns's two troubled funds file for bankruptcy protection and the company freezes assets in a third fund.
Aug. 5 -- Bear Stearns Co-President and Co-Chief Operating Officer Warren Specter resigns. Alan Schwartz becomes sole president. CFO Molinaro takes over co-COO role.
Aug. 6 -- Bear Stearns sends letters to clients reassuring them the company is financially sound. "Rest assured, Bear Stearns has seen challenging markets before and has the experience and expertise to serve you and us well," the firm says.
Aug. 6 -- Warren Spector, Bear Stearns's co-president, quits, becoming Wall Street's highest-profile casualty in the burgeoning subprime-lending fiasco.

Aug. 7 -- The Dow industrials surge 286.87 points, or 2.2%, to 13468.78, as investors aggressively bet ahead of the Federal Reserve meeting
Aug. 10 -- Fallout from the credit crisis intensifies, triggering injections of cash by the U.S., EU and Japanese central banks, among others, and sending the Dow industrials plunging 387.18 points to 13270.68.
Aug. 11 -- The Dow industrials drop 212 points during the session before recovering to finish down 31.14 at 13239.54.
Aug. 16 -- The Dow industrials tumble 167.45 points, or 1.29%, to close at 12861.47 and extend the previous day's 207.61-point fall.
Aug. 18 -- The Fed cuts the discount rate, or interest charged on loans it makes to banks and other depository institutions, to 5.75% from 6.25%.
Aug. 23 -- Bank of America acquires a $2 billion equity stake in Countrywide in a bid to bolster the confidence of creditors and investors in the mortgage lender
Sept. 12 -- Crude rises 74 cents to a record $78.23.
Sept. 19 The Fed cuts the federal-funds rate, the benchmark target rate for overnight lending between banks, by half a percentage point to 4.75%

Sept. 20 -- Bear reports 68% drop in quarterly income. The company's accounts slipped by $42 billion between the end of May and the end of August.
Sept. 21 -- Gold soars to a 27 1/2-year high of $732.40 a troy ounce on combination of a weak dollar and increasing inflation fears
Oct. 1. -- UBS says it will write down as much as $3.41 billion in fixed-income assets, including securities tied to subprime mortgages.
Oct. 2 -- The Dow industrials surges 191.92 points, or 1.38%, to 14087.55. It was the average's 55th record finish in the previous 12 months, surpassing 14000.41 in July.
Oct. 12 -- A deal-inspired rebound in the technology sector helps stocks and the Dow climbs 77.26 to 14093.08.
Oct. 16 -- Citigroup posts a 57% drop in profit, as the bank is hit with write-downs tied to mortgage-backed securities and loans to fund deals that were delayed
Oct. 17 -- Morgan Stanley laid off about 300 bankers after revenue from sales and trading in credit markets in its third quarter plunged to $260 million from $1.3 billion three months earlier. The bank also wrote down more than $1 billion of loans for leveraged buyouts.
Oct. 18 -- J.P. Morgan Chase's net rises 2% to a record $3.37 billion as CEO James Dimon's plan to slash costs and invest heavily in technology appear to pay off amid the credit crunch.
Oct. 25 -- Merrill Lynch posts a $2.24 billion loss as a larger-than-expected $8.4 billion write-down on mortgage-related securities leaves the firm with its first quarterly deficit since 2001.
Oct. 27 -- Countrywide Financial posts its first quarterly loss in 25 years on about $1 billion in write-downs.
Oct. 28 -- The Federal Reserve cuts interest rates by a quarter point to 4.5%
Nov. 3 -- Gold futures climb 1.9%, or $15, to $805.70, the highest level since January 1980, on inflation fears.
Nov. 4 -- Citi's CEO Charles Prince resigns. Vikram Pandit, head of its investment-banking business, is named chief executive.
Nov. 8 -- GM posts a $38.96 billion loss due to a tax-credit write-down, one of the biggest quarterly losses for a U.S. company.
Nov. 14 -- Bear Stearns CFO Molinaro says the company will write down $1.62 billion and book a fourth-quarter loss.
Nov. 15 -- Merrill names John Thain, the chief of NYSE Euronext and a former Goldman Sachs executive, as its new CEO, as the board seeks steady leadership in the wake of inner turmoil and risky expansion.
Nov. 24 -- Crude hits a record $98.18, its high for the year, amid forecasts of higher output and cold Northeast weather.

Nov. 27 -- Citigroup, seeking to restore investor confidence amid massive losses in the credit markets and a lack of permanent leadership, receives a $7.5 billion capital infusion from the investment arm of the Abu Dhabi government.
Nov. 28 -- Bear Stearns lays off another 4% of its staff, two weeks after cutting 2% of its workforce.
Dec. 11 -- UBS announces write-downs of $10 billion, becoming one of the biggest casualties of the U.S. subprime-mortgage meltdown. The disclosure comes as the Swiss bank receives an $11.5 billion capital infusion from Singapore's investment arm and a Middle Eastern investor.
Dec. 12 -- The Fed cuts interest rates by a quarter percentage point to 4.25%, the third reduction since August, and leaves the door open to further cuts.
Dec. 12 -- The Dow industrials plunge 294.26 points, or 2.1%, to 13432.77, as many investors hoped for a half-point cut.
Dec. 20 -- Bear takes $1.9 billion write-down. CEO Cayne says he'll skip his 2007 bonus.
Dec. 20 -- Morgan Stanley posts a $3.59 billion loss, its first quarterly deficit in 21 years, amid a $9.4 billion write-down on its mortgage assets. The firm receives a $5 billion investment from a Chinese fund in exchange for a 9.9% stake. Chinese buyers spend $29.2 billion acquiring foreign companies, outpacing for the first time foreign buyers that have invested in China.
2008
Jan. 7 -- Bear Stearns CEO Cayne retires under pressure. President Alan Schwartz takes over.
Jan. 10 -- Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund. Citi could get as much as $10 billion, likely all from foreign governments.
Jan. 15 -- Financial stocks swoon as economists predict the U.S. economy will slip into recession. President Bush unveils a $150 billion stimulus plan.
Jan. 21 -- While U.S. markets were closed for the Martin Luther King Jr. holiday, major indexes fell 7.2% in Germany, 7.4% in India and 5.5% in Britain.
Jan. 22 -- Fed policy makers make the single deepest cut in the interest-rate target in more than two decades: a three-quarter percentage-point cut in the target for the federal-funds rate, to 3.5%.
Jan. 24 -- Congress and the White House hammer out an economic stimulus package that would put $150 billion into the hands of consumers and businesses while seeking to revive the market for large mortgages.
Feb. 15 -- Subprime woes spread to a broad range of assets, including certain kinds of municipal debt.
Feb. 26 -- Federal Trade Commission Chairman Deborah Platt Majoras announces she will resign next month
Feb. 27 -- Oil futures soared to a record all-time settlement above $102 a barrel, bolstered by the dollar's slide to new lows
Feb. 27 -- Gold settled at $958.20 after a record high of $960 overnight on the New York Mercantile Exchange.
March 3 -- Crude-oil futures on the New York Mercantile Exchange touched $103.95 a barrel in intraday trading before settling at $102.45. Oil has now surpassed its longstanding April 1980 record, when adjusted for inflation to January 2008 dollars, of $103.76 a barrel.
March 3 -- Gold inched closer to the psychologically important threshold of $1,000 an ounce, hitting an intraday high of $986.90. Gold is still less than half its inflation-adjusted peak of $2,239.67, hit on Jan. 21, 1980.
March 10 -- Market rumors say Bear may not have enough cash to do business. "There is absolutely no truth to the rumors of liquidity problems that circulated today in the market,'' Bear says.
March 10 -- Broker-dealer Lehman Brothers announced a fresh round of layoffs totaling 5% of its workforce, or 1,425 people.
March 11 -- The Dow Jones Industrial Average rocketed 416.66 points, or 3.6%, to 12156.81
March 12 -- Bear CEO Schwartz goes on CNBC to reassure investors his company has enough liquidity and he is "comfortable" it turned a profit in the fiscal first quarter.
March 12 -- Crude-oil futures sprung to a fresh record at $109.92 on the New York Mercantile Exchange after gliding as high as $110.20 a barrel.
March 13 -- Some gold futures hit the much-expected $1,000-an-ounce price.
Associated Press
March 14 -- The federal government and J.P. Morgan Chase bail out Bear. The company says it sought the emergency funding after realizing it would not be able to keep up with a spike in demand from lenders.
March 16 -- J.P. Morgan announces it has acquired Bear Stearns for $2 per share, or about $236 million.
March 17 -- Swiss banking giant UBS reduces its balance sheet by some $520 billion, or 20%, from last year. The dollar weakened to its lowest point in more than 12 years against the yen, to below ¥96 to the dollar. The 13-nation euro traded as high as $1.5905, a new record, before dropping back slightly to $1.5

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