On 19 Oct 2014
The implications of being right about stocks,
I was in the mortgage market prior to any QE or other drastic policy and I sat in a front row seat.
Mar 14Fed Backs Sale of Bear Stearns
The Federal Reserve announces that it will provide $30 billion in financing to support JPMorgan Chaseâ€™s acquisition of Bear Stearns.
Jul 30Treasury Gets Authority to Rescue Fannie and Freddie
President Bush signs the Housing and Economic Recovery Act of 2008, which authorizes funds for a government rescue of Fannie Mae and Freddie Mac.
Sep 7Government Rescues Fannie and Freddie
Fannie and Freddie are placed under the conservatorship of the Federal Housing Finance Agency. For each company, the current CEOs and board of directors are dismissed, and Treasury receives warrants for each representing 79.9 percent of the common stock. Under the terms of the rescue, the Treasury commits to invest up to $100 billion in each company to compensate for their losses.
Sep 15Lehman Goes Under
Lehman Brothers declares bankruptcy, accelerating the deterioration of the credit markets.
Sep 15Bank of America Gobbles Up Merrill
Bank of America announces it will buy Merrill Lynch.
Sep 16First AIG Bailout
With AIG collapsing, the Fed bails it out with access to an $85 billion credit line.
Sep 20Paulson Pitches TARP
Treasury Secretary Hank Paulson releases a three-page, $700 billion proposal to purchase troubled mortgage-related assets, called the Troubled Asset Relief Program.
Sep 25WaMu Collapses
Washington Mutual collapses and is acquired by JPMorgan Chase.
Sep 29The House Rejects TARP
The House votes down the administration's bailout proposal, which had been prepared in concert with congressional leaders.
8 bailouts: $115B
Oct 1The Senate Passes TARP
The Senate passes a revised version of the bill, stuffed with tax breaks.
Oct 3The House Passes TARP
The House passes the bill, and the president signs the $700 billion Emergency Economic Stabilization Act into law.
Oct 8Second AIG Bailout
The government restructures its bailout of AIG. The insurer gets access to $37.8 billion more in loans.
Oct 14Paulson Rolls Out Bank Investments
The Treasury Department announces that it will invest up to $250 billion in the nation's banks via the Capital Purchase Program, a subcomponent of the TARP, and billed as investments in "healthy banks." Paulson announced nine major banks signed on for a total of $125 billion in investments. (More about the program here.)
Oct 3Wells Fargo Buys Wachovia
Wachovia, rejecting a previous proposal with Citigroup, agreed to merge with Wells Fargo for $15.4 billion
46 bailouts: $90.3B
Nov 10Third AIG Bailout
The government restructures its bailout of AIG for the second time. Treasury invests $40 billion in AIG as part of the governmentâ€™s now-$150 billion effort to keep AIG from collapsing.
Nov 12Paulson Scraps Original Bailout Plan
Paulson announces that he's scrapping the plan to purchase troubled assets. The capital investments in the banks proved to be a "more powerful" means of boosting the financial system, he said.
Nov 14Freddie Mac Asks for $13.8 Billion
Freddie Mac reports a net loss of $25.3 billion for the third quarter of 2008. To fill the hole of its losses, the Federal Housing Finance Agency requests $13.8 billion from the Treasury.
Nov 23Citigroup Bailed Out
The Treasury announces that it will invest $20 billion more in Citigroup; this is in addition to a $25 billion investment in October through the Capital Purchase Program. The government also agrees to use up to $5 billion to help Citi absorb losses from a $301 billion pool of assets.
Nov 25Fed and Treasury Roll Out Program to Spur Lending (TALF)
The Treasury and Fed announce the Term Asset-Backed Securities Loan Facility (TALF), a Fed program that will lend up to $200 billion to owners of highly rated asset-backed securities in order to spur consumer lending. Treasury puts up $20 billion to support the effort.
166 bailouts: $65.4B
Dec 19Auto Bailout Announced
The Treasury announces that it will make loans to General Motors and Chrysler to prevent bankruptcy.
150 bailouts: $43.3B
Jan 15Senate Votes to Release Second Half of Bailout Funds
Under the Emergency Economic Stabilization Act, Congress had the power to block the release of the second half of the $700 billion funding authorized by the bill. But after promises by the incoming administration about how it would spend the money, the Senate voted to allow access to the remaining $350 billion.
Jan 16Bank of America Bailed Out
The Treasury announces a deal with Bank of America similar to the Citi deal. It will invest $20 billion more in Bank of America; this is in addition to a $25 billion investment in October through the Capital Purchase Program. The government also agrees to help Bank of America absorb losses from a $118 billion pool of assets. That agreement, however, is never finalized.
Jan 20Barack Obama Takes Office
Obama is inaugurated as the 44th president.
Jan 26Geithner Takes Office
Timothy Geithner is sworn in as Secretary of the Treasury.
109 bailouts: $31.3B
Feb 10Geithner Pitches New Bailout Plan
Geithner rolls out the Financial Stability Plan. Geithner promises to perform "stress tests" on the nation's biggest banks to determine their health and the necessity of more government investments, announces that the government will form some sort of public-private partnership to buy troubled assets from the banks, says he'll commit an additional $100 billion to boost the TALF and promises the administration will soon introduce its foreclosure prevention plan.
Feb 17Stimulus Bill Passes, Limiting Exec Bonuses
President Obama signs the American Recovery and Reinvestment Act of 2009, which includes a section limiting the bonuses of the highest earning executives at firms that received bailout money.
Feb 18Rollout of Mortgage Rescue
The administration announces its broad plan to prevent foreclosures and promote mortgage loan modifications. (More about the program here.)
Feb 18Treasury Ups Limit for Fannie and Freddie to $200 Billion
Geithner announces that the Treasury is increasing its funding commitment to both Fannie and Freddie from $100 billion to $200 billion.
Feb 25Stress Tests Begin
Bank regulators begin their stress tests of the nationâ€™s 19 largest banks and promise that they'll be finished by the end of April at the latest. Treasury officials explain that the tests will be used to determine how much more money the banks need to survive a steep economic downturn.
Feb 26Obama Administration Makes Room for $750 Billion More
The administration's budget blueprint suggests that the Treasury Department might need as much as $750 billion more to stabilize the financial sector.
Feb 26Fannie Mae Asks for $15.2 Billion
Fannie Mae reports a $25.2 billion loss for the fourth quarter of 2008 and losses for all of 2008 totaling $58.7 billion. To fill the holes of its losses, the Federal Housing Finance Agency requests $15.2 billion from the Treasury.
68 bailouts: $77.8B
Mar 2Fourth AIG Bailout
The government restructures its bailout of AIG for the third time. Treasury says it might invest up to $30 billion more. Together, the Fed's and Treasury's commitments add up to $180 billion.
Mar 3Fed Launches TALF
The Fed and Treasury announce the launch of the TALF.
Mar 4Administration Launches Homeowner Bailout
The Treasury launches its plan to promote mortgage loan modifications and pledges to spend $75 billion on the effort.
Mar 11Freddie Mac Asks for $30.8 Billion More
Freddie Mac reports a $23.9 billion net loss for the fourth quarter of 2008 and net losses for 2008 totaling $50.1 billion. To fill the hole of its losses, the Federal Housing Finance Agency requests $30.8 billion from the Treasury, bringing the total bailout to $44.6 billion.
Mar 15AIG Pays Out Bonuses to Execs
AIG pays out $165 million in retention bonuses to executives who work in the business unit that was primarily responsible for sinking the company.
Mar 16Treasury Announces Small Biz Program
The Treasury announces a program to spur credit markets for small businesses by purchasing up to $15 billion in securities backed by Small Business Administration loans. The program never gets off the ground.
Mar 19Treasury Announces Auto Parts Program
The Treasury announces the Auto Supplier Support Program, a plan to provide up to $5 billion in financing to auto parts suppliers. (More about the program here.)
Mar 23Treasury Announces Toxic Asset Program
Treasury Secretary Geithner rolls out the administration's plan to use government capital and financing to team with private investors to buy up toxic assets. Between $75 billion to $100 billion will be dedicated to the effort. (More about the program here.)