On November 4, 2008, one month after Congress approved the stimulus legislation, Americans voiced their frustration over the struggling economy. It had become the dominant issue in the Presidential election, overtaking the war in Iraq as the top concern among voters. Because of its potential impact on the global financial crisis, this election became the most closely-watched Presidential race in decades, not only in the United States, but around the world.
» Stocks Stage Rally As US Votes For President
» McCain Calls For Bailout Of Troubled Homeowners
» Comparing The Candidates
» Five Economic Policies Facing The Next President

Once sworn-in, President Obama and his economic team launched a rapid-fire series of plans and proposals designed to turn the ailing economy around. They knew it would not be a quick fix. They knew it would need public and private sector support. And they knew it would require bold ideas that had never been tried before.
» The Inauguration
» Obama’s Major Economic Overhaul
» Treasury Looks To Shed Bad Assets
» Obama Walks Tightrope On Bailing Out U.S. Banks

By February 2009, the Obama administration announced the government would buy stock in dozens of banks under the Treasury’s Capital Purchase Program. Second, it unveiled a new Financial Stability Plan that included a public-private fund that would buy toxic assets from financial institutions.  The FSP also expanded the Federal Reserve’s TALF program and ramped up efforts to prevent residential mortgage foreclosures.
» The Treasury’s Public-Private Plan
» The Financial Stability Government Web Site
» Treasury Announces TARP Capital Purchase Program
» Why More US Banks Aren't Being Allowed To Fail
» Subprime Lenders First in Line for Federal Subsidies
» Citigroup Gets $20 Billion Government Lifeline
» Government's Citigroup a Good One, But Peril Still Looms
» Bailout Tracker

The financial institution appearing to require the most federal help and the greatest government oversight was Citigroup. The massive “financial supermarket” created over the past decade had become too big for its own good. As CEO Vikram Pandit tried to sell assets and reorganize the company into a more manageable business, the government became its biggest shareholder, taking a 34% stake in the bank. In late February 2009, despite a $45 billion dollar government investment, Citigroup stock had dropped 78% since the beginning of the year. Citi shares fell to their lowest level since November 1990, at one point trading below one dollar per share. Federal regulators debated the fate of Pandit, wondering if he should be replaced with a new chief executive. FDIC Chairman Sheila Bair reportedly pushed for Pandit’s removal, while Treasury Secretary Tim Geithner reportedly lobbied to give Pandit more time to fix Citigroup.
» Citigroup To Abandon Role As Financial Supermarket
» Government Plans To Take A 34 Percent Stake In Citigroup
» The Most Powerful Banker That You Have Never Heard of

On February 17, less than a month into his Presidency, Obama signed historic legislation known as the American Recovery and Reinvestment Act of 2009. The bill authorized massive government spending and targeted tax cuts in hopes of jump-starting the economy. The spending plan focused heavily on public works and infrastructure projects that would create thousands of jobs, while the tax cuts for workers making less than $250,000 put more money in consumers’ pockets.
» Congress Approves The American Recovery & Reinvestment Act
» Obama Signs Historic Economic Stimulus Act
» Stock Market Hits 11 Year Low Just Days After Stimulus Is Signed
» White House Advisor Says Stimulus Impact May Be Bigger Than Expected
» Stimulus Numbers: Transparent? Yes. Intelligible? No

Americans who chose to save that extra cash wondered where to put it: was their money safer in the bank or under their mattress? The question arose on May 27, 2009 when the FDIC revealed its quarterly “problem bank” list in late February. It had grown from 171 to 252. The FDIC also revealed 25 banks had failed in 2008, the largest number since 1993, during the Savings & Loan crisis. Three months later, in the FDIC’s next quarterly report, the number of “problem banks” increased again, from 252 to 305. And, the FDIC reported that 21 banks had failed in the first quarter of 2009, the most in a quarter since early 1992.
» The End Of Big Banks
» Bernanke Testifies Before Congress About Tarp Funds
» The Treasury Lends Hand To FDIC
» Sheila Bair: FDIC Could Go Bust
» Barney Frank Talks On Squawk Box About Banks & TARP
» Geithner Gives Update On TARP Before Banking Committee
» Bernanke Is Questioned About TARP Transparency
» List of Problem Banks Swells, Is Your Money Safe?
» 2008 Bank Failures

The financial shocks during Barack Obama’s first 100 days were not over yet. AIG, the huge insurance conglomerate now 80% owned by the government, made headlines again. In early March, the Federal Reserve and Treasury restructured the government’s assistance to AIG, injecting another $30 Billion in TARP money. Much more controversial news about AIG broke two weeks later, when media reports revealed the company had paid $165 million in bonuses to executives, including members of the trading unit that caused the company’s collapse.
» AIG Says It Will Try To Restrain Future Bonuses
» Despite Outrage Over Bonuses, Still No Punishment
» AIG Banks From Government Funded Bailout
» AIG CEO Ed Liddy Testifies Before Congress
» Liddy Lays Out AIG Future Business Plan

Outraged politicians, including President Obama, demanded the bonus money be blocked, forcibly recovered, or voluntarily returned. New York’s Attorney General even threatened to make public the names of AIG employees who received those bonuses. Interim AIG CEO Ed Liddy, who took the job as a gesture of goodwill at a salary of only $1 a year, was called to testify before a Congressional committee. Although he had nothing to do with the bonuses, he took the heat anyway. Eventually, by March 2009, most of the money was given back. And Liddy announced he was leaving AIG, saying the company needed a new Chief Executive who could chart the firm’s future.
» Former AIG CEO Denies Starting AIG Bonuses
» AIG Sets Deadline For Employees To Return Bonuses
» Activists Protest Outside AIG Executives’ Homes
» 15 AIG Execs Agree To Return Bonuses
» Obama Demands Bonuses Be Returned

Finally, the results were made public. The Treasury carefully choreographed the announcement, in hopes of avoiding an investor sell-off of bank shares or consumer runs on accounts at the less-stable banks. Of the 19 financial institutions put through the rigorous tests, the government concluded nine had adequate capital to withstand further shock, while ten needed to add a total of $185 Billion in order to buffer themselves for more adverse conditions. Each of the ten were given 30 days to develop a plan to raise the required capital.
» Read The Government Stress Test Report
» TARP Panel Report Gives Lukewarm Review To Tests
» Banks Raise More Than $75 Billion After Tests
» Stress Tests Reveal Array Of Banks Financial Troubles
» Nine Of 19 Biggest Banks Fit For Deeper Recession
» After Stress Tests: Investors Look For Winners And Losers
» Pros Say: Stress Tests Not An 'All-Clear' Sign
» 10 Banks Submit Capital Replenishment Plans: Fed
» Failed Bank List 2009

The domestic automakers had been losing market share to foreign rivals for a long time, and by 2008 their sales went from bad to worse. The sales drop, coupled with huge payouts for employee and retiree health benefits, left the “Big Three” with no choice but to beg for help from the government. While all three struggled to stay in business, Ford looked the strongest. GM and Chrysler appeared on the verge of bankruptcy. Months earlier, in late 2008, their CEOs testified before Congress, laying out new business plans and asking for federal bailouts. Finally, President Obama and his Auto Task Force had lost their patience. In April and June 2009 the automakers’ road to ruin took a drastic detour as the government forced Chrysler and GM into Chapter 11 bankruptcy. It was a calculated strategy to help the companies emerge leaner, with fewer models, fewer legacy costs, and fewer financial hurdles to overcome.
» GM CEO: Bankruptcy Probable, Not Preferred
» Chrysler, GM Dealers Hire Lawyers For Bankruptcies
» GM Locked, Loaded And Ready For Bankruptcy
» GM’s Bankruptcy Application
» Chrysler, GM 'Skidding' Their Way Through Bankruptcy
» Chrysler Restructures
» Obama And GM CEO Discuss Company Bankruptcy Plan
» Chrysler CEO Robert Nardelli Testifies Before Congress
» GM: History Of An Automaker

By the time 2009 was half-over, the automakers were poised to emerge from bankruptcy and some of the banks that received TARP funds were ready to repay the government.  The housing market showed signs of a bottom, as low mortgage rates sparked a modest increase in sales.  The stock market began to reverse its slide.  President Obama proposed a complete overhaul of the country’s financial regulatory system.  And the savings rate, which had declined for years, started to rise, indicating Americans had learned a painful, yet valuable lesson.
» Read Obama's Financial Reform Plan Draws Mixed Reviews
» Ten Major Banks Repay $68 Billion In Tarp Funds
» Rebound Set For 2012; Where Housing Will Be In Three Years
» Small Signs Of Improvement In Housing
» Investors Still Trust Rating Agencies
» GM's Second Chance
» With Sale Of Good Assets, GM Out Of Bankruptcy
» Ford CEO Says Economic Recovery On The Horizon
» Obama Financial Reform Plan Draws Mixed Reviews
» Jobless Claims Plunge; Continuing Claims Hit Record
» 11 CEO's That Were Bruised Or Broken By Financial Crisis

The crisis that began exactly two years earlier with the collapse of Bear Stearns hedge funds invested in subprime mortgages wasn’t over yet.  But the phrases “glimmers of hope” and “green shoots” started appearing in our lexicon.  Perhaps the worst of the boom that went bust was finally behind us.
» Interactive Map: The Economy Where You Live
» Three Lessons From The Financial Crisis
» Government Profits $14 Billion From Crisis Loans
» Home Sales Beat Expectations: What's Next? 5 Things To Know
» Has The Stimulus Created Great Places To Find Jobs?
» 15 Government Heavy (And Recession-Resistant) Cities
» What The Financial Crisis Taught Us
» Bernanke Is Reappointed As Chairman Of Federal Reserve
» Bernanke's Plan For An Exit Strategy

CNBC’s anchors and reporters discuss what it’s like covering the worst recession since the great depression, how close to the edge the world economy came and how we must  rebuild.