Credit Crunch Timeline

Published Wed, Sep 17 200812:07 PM EDTUpdated Thu, Aug 5 20101:27 PM EDT

The Timeline

Hasty takeovers, government bailouts, bankruptcy filings, CEO ousters and lots of interest rate cuts. Together, they've provided plenty of controversy and second-guessing during the year-long financial crisis. Click ahead for the big events of the big bust.

August 10, 2007: Fed Sounds Alarm

Amid growing financial market turbulence and cries for an interest rate cut, the Federal Reserve Board says it "providing liquidity to facilitate the orderly functioning of financial markets." A week later, the Fed says "conditions have deteriorated" and it is "is prepared to act as needed, but does cut rates, waiting to do so at regularly-scheduled FOMC meeting Sept 18.

Amid growing financial market turbulence and cries for an interest rate cut, the Federal Reserve Board says it is "providing liquidity to facilitate the orderly functioning of financial markets." A week later, the Fed says "conditions have deteriorated" and it "is prepared to act as needed, but doesn't cut rates, waiting to do so at regularly-scheduled FOMC meeting Sept. 18.

>Slideshow: 2008 Bank Failures
>Slideshow: Largest US Bankruptcies

Oct. 30, 2007: CEO Casualties Begin

Merrill Lynch Chairman and Stanley O'Neal is forced out, following major losses and writedowns because of its subprime business. Other top bosses from Citigroup's Charles Prince to Wachovia's Ken Thompson would soon follow.

Merrill Lynch Chairman and CEO Stanley O'Neal is forced out, following major losses and writedowns because of its subprime business.

Other top bosses from Citigroup's Charles Prince to Wachovia's Ken Thompson would soon follow.

>Slideshow: 2008 Bank Failures
>Slideshow: Largest US Bankruptcies

March 16, 2008: Bear Stearns Bought

The brokerage firm is bought by JPMorgan Chase in a $2-a-share deal engineered by and backed up by the federal government in the wake of big losses in the mortgage-backed securities market and a shriveling stock price. The price is later adjusted to $10 a share, which hit a record high of about $171 in January 2007

The brokerage firm is bought by JPMorgan Chase in a $2-a-share deal engineered and backed up by the federal government in the wake of big losses in the mortgage-backed securities market and a shriveling stock price. The price is later adjusted to $10 a share, which hit a record high of about $171 in January 2007.

>Special Report: Bear Stearns Collapse

July 11, 2008: IndyMac Bank Fails

Federal regulators seize the thrift amid concern about a run on despoits, as the combination of the credit crunch and mortgage meltdown suffocate its business. The failure will cost the Federal Deposit Insurnace Fund an estimated $4-8 billion.

Federal regulators seize the thrift amid concern about a run on deposits, as the combination of the credit crunch and mortgage meltdown suffocate its business. The failure will cost the Federal Deposit Insurance Fund an estimated $4-8 billion.

>Slideshow: 2008 Bank Failures
>Safety Nets For Savers And Investors

Sept. 7, 2008: Fannie, Freddie Seized

The federal government takes control of Fannie Mae and Freddie Mac, the two publicly-traded, government-sponsored financial giants that hold or guarantee about half the nation's $10 billion mortgage loans.

Sept. 10-15 2008: Lehman Brothers Flounders

The Wall Street firms puts itself up for sale after reporting a $4-billion loss, but fails to close a deal. Days later, with the federal government having passed on a bailout, Lehman files for chapter 11 bankruptcy protection, the biggest in history.

The Wall Street firm puts itself up for sale after reporting a $4 billion loss, but fails to close a deal. Days later, with the federal government having passed on a bailout, Lehman files for chapter 11 bankruptcy protection, the biggest in history.

>Special Report: The Fall of Lehman Brothers>Slideshow: Largest US Bankruptcies

Sept. 15, 2008: Merrill Lynch Bought

Merrill Lynch arranges agrees to be bought by Bank of America a $50-billion, all-stock transaction. The acquisition makes Bank of America the largest brokerage in the world with more than 20,000 advisers and $2.5 trillion in client assets.

Merrill Lynch agrees to be bought by Bank of America in a $50-billion, all-stock transaction. The acquisition makes Bank of America the largest brokerage in the world, with more than 20,000 advisers and $2.5 trillion in client assets.

>Special Report: Wall Street in Crisis

Sept. 16, 2008: AIG Bailed Out

The federal government provides an $85-billion emergency loan package under which it takes a majority stake in American International Group. The move comes amid a cash crunch, triggered by $18 billion of losses over three quarters, a sinking stock price and debt downgrades.