Appendix: Selected Events up to and during the Financial Crisis

2 April 2007 New Century Financial, subprime mortgage lender, files for bankruptcy (Chapter 11).

22 June 2007 Bear Stearns announces that it has provided a facility of up to 3.2 billion dollars to the High-Grade Structured Credit Fund, while the High-Grade Structured Credit Enhanced Leverage Fund will be deleveraged in the marketplace without financial assistance from Bear Stearns.

30 July 2007 IKB Deutsche Industriebank, IKB, announces that it is hit by the subprime crisis. Rhineland Funding (conduit), with a credit facility with IKB, and to a lesser extent IKB itself, have invested in structured credit products related to US subprime mortgages. IKB's principal shareholder, KfW Banking Group, and three German bank funds had, together with the government, provided a rescue package in the days up to 30 July.

9 August 2007 BNP Paribas suspends the calculation of mark-to-market for three money market funds that are subprime-exposed, and puts a stop to amortisations.

9 August 2007 The European Central Bank, ECB, provides 95 billion euro to the money market with overnight maturity. Three more operations are carried out in the following days, totalling almost 117 billion euro.

26 August 2007 Landesbank Baden-Württemberg announces that as of 1 January 2008 it will take over Sachsen LB, which had suffered large losses on subprime investments.

14 September 2007 The Bank of England announces that it is ready to provide liquidity support to Northern Rock. This leads to an actual run on Northern Rock, followed by a government guarantee, on 17 September, for Northern Rock's existing deposits.

11 January 2008 Bank of America announces its acquisition of Countrywide Financial, a major provider of mortgage financing.

13 February 2008 IKB announces that the losses on its portfolio are of a magnitude that requires yet another bailout operation.

17 February 2008 The British government announces the temporary nationalisation of Northern Rock.

14 March 2008 The Federal Reserve and JPMorgan Chase provide liquidity to Bear Stearns. Two days later, JPMorgan Chase announces that it will take over Bear Stearns.

11 July 2008 IndyMac Bank, with focus on mortgages, is taken over by the Federal Deposit Insurance Corporation (FDIC). IndyMac Bank is located in California. It had suffered substantial losses before the takeover and had also been subject to an actual run on the bank.

13 July 2008 The Federal Reserve provides a credit facility to the mortgage companies Fannie Mae and Freddie Mac.

7 September 2008 The Federal Housing Finance Agency, FHFA, takes control of Fannie Mae and Freddie Mac.

15 September 2008 Svenska Handelsbanken submits a recommended tender offer for the total outstanding share capital of Lokalbanken i Nordsjælland. The purchase takes place in October.

15 September 2008 Lehman Brothers Holding files for bankruptcy (Chapter 11).

15 September 2008 Bank of America announces its acquisition of Merrill Lynch.

16 September 2008 The Federal Reserve provides an 85 billion dollar credit facility to AIG, and in return, the US government acquires an ownership share of 79.9 per cent of AIG. The government is given the right of veto concerning disbursement of dividends to owners of common and preference shares.

18 September 2008 Lloyds TSB announces its intention to acquire HBOS.

20 September 2008 The US Department of the Treasury announces a support package that includes the government's purchase of "troubled assets" for up to 700 billion dollars. The plan is called TARP (Troubled Asset Relief Program), and is passed by the House of Representatives on 3 October, following the rejection of a previous version of TARP on 29 September.

21 September 2008 Goldman Sachs and Morgan Stanley relinquish their status as investment banks and become subject to the same regulatory requirements as ordinary commercial banks.

25 September 2008 The Office of Thrift Supervision under the US Department of the Treasury takes over control of Washington Mutual Bank, which is acquired by JPMorgan Chase on the same day.

29 September 2008 Fortis announces that the governments of Belgium, Luxembourg and the Netherlands will invest 11.2 billion euro in Fortis in their respective countries. This brings the governments' ownership share to 49 per cent. In addition, Fortis must sell its share of ABN Amro.

29 September 2008 The Icelandic central bank, Seðlabanki Íslands, announces that the government will, through the central bank, contribute equity capital equivalent to 600 million euro to Glitnir, bringing the government's ownership share in Glitnir to 75 per cent.

29 September 2008 Hypo Real Estate announces that a consortium from the German financial sector has extended short-term and medium-term credit facilities to it. The private banks renege on the agreement a few days later and the attempted rescue is unsuccessful.

29 September 2008 The Federal Deposit Insurance Corporation, FDIC, announces that Citigroup will take over the bank activities of Wachovia in an FDIC-supported transaction. The transaction is, however, never realised.

30 September 2008 Dexia announces that it has received 6.4 billion euro from the governments of Belgium, France and Luxembourg and its current shareholders.

30 September 2008 The Irish government announces an unlimited deposit guarantee, including banks' debt, covered bonds, senior debt and dated subordinated debt. It is estimated that the banks covered by the guarantee will have to pay 1 billion euro in total over two years.

3 October 2008 Wells Fargo and Wachovia announce their merger without any financial support from public authorities.

5 October 2008 The Danish government announces a rescue package for banks in Denmark. The package includes an unlimited government guarantee of deposits and the banks' debt except covered bonds (SDOs), share capital, hybrid core capital and supplementary capital. The participating banks, i.e. the members of the Danish Contingency Association, will have to pay up to kr. 35 billion over two years.

6 October 2008 BNP Paribas announces that it has concluded an agreement on the acquisition of the Belgian, Luxembourgian an international parts of Fortis.

6 October 2008 Hypo Real Estate announces that a new agreement has now been concluded whereby the German government and the financial sector together offer a credit facility of 50 billion euro. The government provides a guarantee of 35 billion euro.

7 October 2008 The Icelandic financial supervisory authority announces that it has taken over control of Glitnir and Landsbanki.

8 October 2008 The UK presents a rescue package for the financial sector, which includes an amount of 50 billion pounds sterling for recapitalisation of distressed banks and 250 billion pounds for guarantee of the banks' future short-term and medium-term borrowing (excluding subordinated debt).

8 October 2008 Coordinated reduction of interest rates by a number of central banks, including the ECB, the Federal Reserve, the Bank of England and Sveriges Riksbank.

9 October 2008 The Icelandic financial supervisory authority announces that it has taken over control of Kaupthing.

12 October 2008 The euro area member states launch a set of common bank rescue principles including e.g. the possibility of recapitalisation of banks and a temporary government guarantee of future issuance of senior bank debt with a maturity of up to 5 years. More countries follow suit and launch rescue packages, and the 27 EU member states endorse the principles at a summit on 15 October.

14 October 2008 The US Department of the Treasury states that nine major US banks have sold senior preference shares to the government – on a voluntary basis and in order to strengthen the capital base. This includes just over 125 billion dollars of TARP funds, while 21 financial institutions will sell preference shares for just over 30 billion dollars in November.

19 October 2008 ING announces that it will receive 10 billion euro from the Dutch government to strengthen its Tier 1 capital.

10 November 2008 The Swedish government takes over the investment bank Carnegie.

23 November 2008 In a joint statement from the US Department of the Treasury, the FDIC and the Federal Reserve, the authorities provide a guarantee of 306 billion dollars to Citigroup concerning a portfolio of lending, etc. Citigroup assumes all losses up to 29 billion dollars and 10 per cent of losses exceeding this limit. The government also provides a further 20 billion dollars of TARP funds.

25 November 2008 The Federal Reserve announces the purchase of mortgage-credit bonds and MBS (mortgage-backed securities) for up to 600 billion dollars. In addition, the Federal Reserve launches a new facility called TALF (Term Asset-Backed Securities Loan Facility) to support loans to small business enterprises, student loans, car loans and credit card loans. The facility amounts to up to 200 billion dollars.

19 December 2008 The US Department of the Treasury grants loans for up to 13.4 billion dollars to General Motors Corp. and 4 billion dollars to Chrysler under the TARP.

21 December 2008 The Irish government announces that it will recapitalise Anglo Irish Bank, Allied Irish Banks and Bank of Ireland.

15 January 2009 The Irish government announces that it will nationalise Anglo Irish Bank, thereby abandoning the recapitalisation plans announced on 21 December 2008.

16 January 2009 The US Department of the Treasury and FDIC announce a loss-sharing agreement with Bank of America for a portfolio comprising loans, securities, etc. for a total of 118 billion dollars in return for preference shares in the bank. Moreover, if required, the Federal Reserve will provide a "back-stop" loan to cover the remaining risk on the portfolio. This loan is a "non-recourse loan", meaning that in the event of bankruptcy or other default, the Fed's recovery is limited to the assets pledged as collateral for the loan. Finally, the Department of the Treasury will invest 20 billion dollars in TARP funds in the bank.

3 February 2009 The Act on State-Funded Capital Injections (Bank Rescue Package II) is adopted by the Folketing (Danish parliament).

17 February 2009 The US President signs a 787 billion dollar stimulus package comprising tax cuts and increased government spending.

25 February 2009 The US authorities announce that US banks with assets of at least 100 billion dollars must pass a mandatory stress test by the end of April 2009. Banks that fail the test must, within the following six months, either procure the necessary private capital or accept government capital in the form of convertible preference shares.

26 February 2009 The Royal Bank of Scotland announces plans to participate in the British government's "Asset Protection Scheme" with assets of 325 billion pounds. In addition, Her Majesty's Treasury will purchase 13 billion pounds' worth of 'B' shares, to be included in the Tier 1 capital, and another 6 billion pounds' worth if the RBS so wishes.

27 February 2009 The US Department of the Treasury announces that it is willing to convert up to 25 billion dollars in Citigroup preference shares into common shares if private investors are willing to do the same.

2 March 2009 AIG announces a loss of 61.7 billion dollars in the 4th quarter of 2008. The US Department of the Treasury and the Federal Reserve announce a restructuring of the government's assistance to AIG, which will receive up to 30 billion dollars in additional TARP funds. Moreover, the Department of the Treasury will exchange its existing position of 40 billion dollars in AIG preference shares for new preference shares that more closely resemble common shares.

7 March 2009 Lloyds Banking Group announces that it will apply for insurance of assets for 260 billion pounds under the British government's "Asset Protection Scheme". At the same time, Lloyds accepts that the government can convert preference shares into common shares. The result of this agreement could be that the government controls up to 75 per cent of the voting rights in Lloyds.

7 May 2009 The US Department of the Treasury publishes stress-test results for the 19 largest US banks. The stress test is aimed as assessing whether the banks' capital buffers are sufficient, cf. Box B2.