Financial Crisis Timeline and list of institutions involved

[DemReadingDU]

From Ed's forum. I discovered this blog over the weekend. The list of institutions involved in the financial crisis, is very long, and growing. Here is the introduction from Ed...

There have been a tremendous number of economic dislocations during the present financial crisis. Initially written off as a sub-prime crisis, leading policy makers said the crisis was contained. It has since spilled over into Jumbo mortgage rates, Collateralized Debt Obligations (CDOs), all asset backed securities, High Yield bonds, SIVs, the inter-bank market, commercial paper, money market funds, the auction rate market hedge fund losses, and a massive housing bust and the real economy. Financial Institutions from around the world are writing down billions of dollars of losses. Housing markets are falling in the US, the UK, Spain and Ireland. This crisis is truly global.

I decided to take a look to get a comprehensive view of what this is doing to our financial system. Below is a partial list of major announcements of asset writedowns, bank failures, CEO firings, trading losses, capital raising and job losses at major global lending institutions as a direct result of the credit crisis of 2007-2008.

In addition, I have included a number of pre-crisis merger announcements that served as prelude to an increased risk taking after the deals closed and leading up to the crisis. You can consider it a credit crisis timeline by financial institution as well as a traditional timeline.

The list reaches far and wide and should give one pause as to the ability of the global financial system to recover from this calamity without significant recessionary effects in the real economy in the US and elsewhere. The losses and needed capital continually rise, with investors willing to infuse these institutions with capital time and again.

I will update and backfill this list as more information becomes available and as time permits. This crisis has been consistently underestimated as it gathers steam. It is far from a subprime crisis, but rather a debt crisis because of the debt and leverage threatening global financial stability.

Click and page forward to see the timeline of events and comprehensive list of banks, financial institutions, and countries involved...
http://edsforum.blogspot.com/2008/05/credit-crisis-timeline.html


Edit: This is a long list! I am sending this link to my family and friends who are not as aware of the financial crisis as we are on this forum.

[flashl]

1. Thanks for the post. Great info. nt

[truedelphi]

2. What a lot of great work you did on this. Here's a few questions:

!) How much money did the USA give in terms of bail out monies to failing banks in fall early winter of 2007? (I think I lost count at about the $ 212 billion dollar mark
2) How much money did the USA give in terms of bail out mopnies etc in 2008?
3) When this bail out money appears, is it from the Federal reserve? Is it from the Treasury? I know ultimately it is the tax payers that are going to get the bill, but where does it originate from?

[DemReadingDU]

3. Sorry, I'm not Ed

I posted his introduction and the link to his forum because I thought it was a great compilation of banks and investment institutions involved in this financial crisis.

Perhaps you could post these questions as comments in his forum, or send your questions in an email to Ed.


edit: I hope Ed updates this list as the financial crisis continues to grow. It's a great blog to see all these financial institutions in one place.

[harry123]

4. I am Ed and am busily updating the site

I caught your post here on the forum and have since joined. Thanks for linking out. I have been updating this list and intend to keep updating it. I look forward to your comments and readership.

Edward Harrison

[TNDemo]

5. So what are your predictions for the coming months?

I know you don't have a crystal ball but just following the data you have accumulated, what do you think is coming down the pike? What do you think about the safety of the banks?

[DemReadingDU]

6. Welcome Ed!

Thanks for you Credit Crisis Timeline, it is very thorough! I have forwarded it to my family and friends too.

I view your blog every day, Great financial info!
http://www.creditwritedowns.com/



:hi:

[harry123]

8. Thanks DemReadingDU!

And as for what's down the pike, I hesitate nto say because people do want to hear good news. The truth is that we are a society that is over-leveraged and is in the midst of a credit unwind and asset deflation. These events are highly deflationary and subject the financial system to lots of stress.

Witness what has happened to the regional financials like NCC, AmTrust, Fifth Third, and on. Basically, most pundits had thought/wanted the unwind to stop after the derivative (RMBS) markdowns, but the underlying loans were bad too. That's where the regionals are being hit.

Next are construction loans and commercial property. That will also hurt regionals as well as a number of money center banks. At some point during the CRE and construction loan unwind, I expect to see bank failures. The hope is major banks will not be affected as this could lead to problems regarding systemic risk, but it also means that regionals will be allowed to fail. Forewarning.

This next leg down will come when the real economy impact impinges on the banks in terms of auto and credit card loans as unemployment starts to have a negative affect on chargeoffs. All of these agents will be working against the financial sector for some time. What is the cure?

In my view, time is the cure. Savings rates will go up. We will have a few short business cycles with a bit of economic worry like the 1970s or like 1990s Japan. The scenario to dread is the 1930s. I am not so pessimistic as to see this as a likely outcome. All of this will take a good decade to work its way through. In the meantime, people's balance sheets will be better and there will always be asset classes and stocks that buck the trend. But, my major theme is extreme caution.

Let's see where we are in two months because we are in a period of some severe systemic risk. I invite you all to sign up for my RSS feed or email and feel very free to e-mail with topic suggestions or critiques. I look forward to the exchange.

Last word: two or three other good blogs are: Calculated Risk, The Big Picture, Naked Capitalism and Mish's Global Economic Analysis. They might give you all some good ideas.

Regards,

Edward

[DemReadingDU]

11. about those Regional Banks

We live in Ohio, and we are exposed to banking risk in 3 of the major Midwest regional banks - National City, Fifth Third, and KeyBank. Needless to say, we are quite worried because we do business with 2 out of the 3. :(

Just in case either (or both) freezes up, we have decided to move some business to a credit union. Haven't read much about risk in credit unions, so perhaps when you have time, this could be another area for you to research.

Thanks for all you do!

Edit: BTW, this forum lets you edit posts for about 20 minutes. I wanted to let you know, I already check the other blogs you mention. Some days, I think I spend all day reading around the blogosphere!

[harry123]

13. Credit unions, just starting to research

Dem,

You probably saw the post already but it was in response to your request:

http://www.creditwritedowns.com/2008/07/principal-agent-problem-part-1-banks.html

Not very comprehensive but a good start. The principal agent problem is something I want to tackle regarding the i-banks as well. anyway, let's keep this in mind. feel free to post a response or question on the blog.

Edward

[DemReadingDU]

15. Thanks, that's great!

I'm concerned that credit unions could also be exposed to mortgage and business loans, not necessarily subprime, but any loans that could possibly be defaulted when the economy really begins to decline (next year?). I could see credit unions going bankrupt just like banks.

[CountAllVotes]

16. you've got some great info. I see

Well done I must say! :hi: and Welcome to the DU btw. We need people like you around here! :D

[DemReadingDU]

18. That's a great timeline

[eridani]

19. Thanks for that

I bank at the Portland OR based Union Bank and do most of my savings through credit unions. If you get a whiff of anything wrong there, please let us know.

[TNDemo]

12. Hey Ed,

I went to your blog and was going to send an email but every time I clicked to send email it would just reload the page to the blog or something. I had a question and thought you might want to use it as a topic but basically it's just a personal finance item. Do you want me to just ask it here?

[harry123]

14. Just ask it here but I'll look into that reload issue

Just saw your post. Go ahead, shoot. (Oh and I fixed the e-mail problem.)

[bronxiteforever]

7. Kick-great stuff

[harry123]

9. Another lsit in progress

DemReadingDU,

One other thing I forgot is I am starting a new list on house prices. I haven't decided where this is going yet. But, at a minimum I have Case/Shiller and the UK's nationwide covered there. Feel free to suggest things you'd like to see. Here's the URL.

http://www.creditwritedowns.com/2008/04/housing-prices.html

I'll start to add a few graphs as well as the links.

Edward

[harry123]

10. I meant another list, also a poll as well

I mentioned this on another forum thread, but I am taking a poll on the site www.creditwritedowns.com to get your predictions as to how far down prices will go from their peak nationally in the US. the poll is in the sidebar at the upper right. I believe polling ends on Sunday. Do make your voice heard. I'd like to get a nice robust sample size.

[ozymandius]

17. Thank you DRDU and Edward.

Please drop by the Market Watch when you have time - if you have time. Thank you for this list. Thank you for doing valuable research into providing the backstory to these crises.

I've bookmarked your site. It's a great compliment to the sites I frequent: Naked Capitalism, Calculated Risk and others.

:hi:

[harry123]

20. Updated list of financial institutions

I have since updated this list to now include an index. More enhancements to follow.

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

In addition, I have started a Bankrupt Global Financial Institutions list. The list is short now. Unfortunately, I expect this list to be long in due course.

http://www.creditwritedowns.com/2008/07/bankrupt-global-financial-institutions.html