Articles: Bank Writedowns & Failures

I am now updating the information on my Credit Crisis Timeline here:

https://www.creditwritedowns.com/credit-crisis-timeline

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 and capital raising 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.

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 U.S. and elsewhere.

I will update and backfill this list as more information becomes available and as time permits. As I have backfilled, what is interesting is the escalating nature of the losses and loss estimates. This crisis has been consistently underestimated as it gathers steam.

Timeline: Sub-prime losses (BBC News)

LOSS ESTIMATES
2007 11 12 Subprime Losses May Reach $400 Billion, Analysts Say
2007 11 20 Subprime crisis seen spilling over into 2009
2008 01 22 Subprime Bank Losses Reach $133 Billion, Led by Merrill: Table
2008 01 31 Subprime, CDO Bank Losses May Exceed $265 Billion
2008 01 31 Subprime Bank Losses Reach $146 Billion as Europe Joins: Table
2008 02 11 Credit writedowns may total $175B – analyst
2008 02 22 Subprime Losses Reach $163 Billion With Asian Banks
2008 03 07 Subprime Losses Reach $188 Billion With Canada, Europe: Table
2008 03 14 Subprime Losses Reach $195 Billion; German Banks Get Hit: Table
2008 04 01 Subprime Losses Reach $232 Billion With UBS, Deutsche: Table
2008 04 08 IMF points to high cost of global credit crisis
2008 04 10 Subprime Bank Losses Reach $245 Billion With WaMu, HSH: Table
2008 04 16 OECD predicts subprime losses to hit $420bn
2008 04 28 Subprime Bank Losses Reach $312 Billion With RBS, Nomura: Table

U.S. BANKS

List of bank mergers in the United States
United States’ Largest Banks
List of banks in the United Kingdom
List of building societies in the United Kingdom
Biggest Mortgage Lenders (for 2007)

Bank of America
2007 11 13 Bank of America in sub-prime hit
2007 11 13 Bank of America Sees $3 Billion Write-Off, CFO Says
2008 01 23 Bank of America Joins Parade of Mortgage-Related Losses
2008 04 21 Bank of America’s profit drops 77 percent in first quarter

Citigroup
2007 10 02 Write-Downs by Big Banks Spark Rally
2007 11 03 Citigroup Chief Is Set to Exit Amid Losses
2007 11 04 Citigroup’s Prince Steps Down, Rubin Named Chairman
2007 11 27 Citigroup to Sell $7.5 Billion Stake to Abu Dhabi
2007 12 14 Citigroup Rescues SIVs With $58 Billion Debt Bailout
2008 01 15 Citigroup’s $9.8bn sub-prime loss
2008 01 15 Citigroup Loses $9.8 Billion; Will Cut Jobs
2008 01 16 Citigroup’s Big Loss Fuels Anxiety and Depresses Stocks
2008 04 18 Citigroup Reports Loss on $15 Billion of Credit Costs

Fifth Third Bancorp
2008 04 22 Fifth Third Beats Consensus

JP Morgan Chase
2008 01 16 JP Morgan’s $1.3bn sub-prime hit
2008 04 16 JPMo
rgan Chase’s profit drops 50 pct in 1Q on reserves boost

National City
Funds to invest up to $8bn in National City bank

SunTrust Bank
2008 04 22 SunTrust Profit Falls 45% on Provisions for Bad Loans

Wachovia
2001 04 17 THE MARKETS: Market Place; First Union Pursues Wachovia, Making Offer of $13.1 Billion
2006 05 07 Paper: Wachovia nears $26B takeover of Golden West
2007 10 20 Wachovia Profit Declines 10%; Job Cuts Ahead
2007 11 09 Wachovia reveals more debt losses
2008 01 23 Wachovia’s Big-City Splash Has a Sobering Aftermath
2008 04 14 Wachovia’s Loss a Grim Sign for Banks

Washington Mutual
2006 02 16 Washington Mutual to Cut 2,500 Jobs
2007 12 11 Washington Mutual Cutting Dividend and Jobs
2008 01 18 Write-Down Contributes to Profit Fall at Trust Bank
2008 04 08 Washington Mutual Raising $7 Billion
2008 04 09 WaMu’s Hedge: CEO Called In Dimon & Co.
2008 04 15 A Loss and a Shake-up at Washington Mutual

Wells Fargo
2007 07 27 Wells Fargo to Limit Subprime Lending
2007 11 28 Bracing for Home Loan Losses, Wells Fargo to Take Big Charge
2008 01 08 Baltimore Is Suing Bank Over Foreclosure Crisis
2008 04 16 Wells Fargo Beats, But Loan Worries Persist

U.S. INVESTMENT BANKS

Bear Stearns
2007 06 23 $3.2 Billion Move By Bear Stearns To Rescue Fund
2007 07 18 Bear Stearns Says Battered Hedge Funds Are Worth Little
2007 11 15 Bear Stearns Credit Rating Cut by S&P on Writedowns
2008 01 09 Bear Stearns boss Cayne resigns
Timeline of JP Morgan Chase’s acquisition of Bear Stearns
2008 03 14 JPMorgan and Fed Move to Bail Out Bear Stearns
2008 03 14 Bear Stearns Has Credit Ratings Slashed After Bailout
2008 03 15 Run on Big Wall St. Bank Spurs U.S.-Backed Rescue
2008 03 25 Seeking Fast Deal, JPMorgan Quintuples Bear Stearns Bid

Goldman Sachs
2007 08 14 Goldman and Investors to Put $3 Billion Into Fund
2007 11 19 Goldman Sachs Rakes In Profit in Credit Crisis

Lehman Brothers
2007 12 13 Lehman earnings fall amid $830 million writedown
2007 01 17 Lehman to cut 1,300 mortgage jobs
2008 03 18 U.S. bank profits more than halved

Merrill Lynch
2007 09 15 Profit Warning by Merrill
2007 10 04 2 Executives Are Ousted at Merrill
2007 10 05 Merrill in $5.5bn sub-prime loss
2007 10 06 A Big Loss at Merrill Stirs Unease
2007 10 24 Merrill Lynch Reports Loss on $8.4 Billion Writedown
2007 10 30 Merrill Lynch chief leaves firm
2008 01 15 Citi Writes Down $18 Billion; Merrill Gets Infusion
2008 01 18 Merrill Posts Huge Loss; Chief Says Firm’s Capital Is Adequate
2008 04 17 Merrill Lynch posts steep first-quarter loss on writedowns
2008 04 17 Merrill Lynch set to cut 10% of its worldwide workforce
2008 04 22 Merrill Raises $9.55 Billion in Sales of Debt, Preferred Shares

Morgan Stanley
2007 11 08 Morgan Stanley takes $3.7bn hit
2007 11 30 Morgan Stanley Executive Ousted After Trading Loss
2007 12 19 Morgan Stanley takes $9.4bn hit

MORTGAGE FINANCIAL

2007 05 30 Subprime Fiasco Exposes Manipulation by Mortgage Brokerages

ACA
2007 12 19 Ambac, MBIA Outlook Lowered by S
&P, ACA Cut to CCC

Ambac
2007 12 19 Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC
2008 01 16 Ambac Will Cut Dividend, Raise $1 Billion in Capital
2008 01 19 Ambac’s Insurance Unit Cut to AA From AAA by Fitch Ratings
2008 01 22 Ambac Reports Loss, Talks With `Potential Parties’
2008 02 25 Ambac Rises on $3 Billion Rescue to Avert Downgrade
2008 03 06 Ambac to Sell Half the Company; Bet May Not Pay Off
2008 03 07 Ambac Gets $1.5 Billion in Capital to Keep AAA Grade
2008 04 23 Ambac swings to 1Q loss as it takes $3.06 billion in charges

American Home Mortgage
2007 07 31 American Home Can’t Fund Mortgages, Shares Plummet
2007 08 06 U.S. lender on brink of bankruptcy

Capital One
2004 02 17 North Fork to Acquire GreenPoint Financial for $6.3 Billion
2006 03 17 North Fork Deal Caps an Investment Bank’s Comeback
2007 08 20 Capital One Shuts Down GreenPoint Mortgage Unit
2007 08 21 Capital One Financial to Quit Residential Mortgage Business
2007 08 21 Sub-prime fallout weighs on firms

Countrywide Financial
2007 08 15 Top U.S. lender ‘risks bankruptcy’
2007 08 16 Liquidity woes hit more lenders
2007 08 23 U.S. mortgage firm gets $2bn boost
2008 01 11 Bank of America buys Countrywide

Fannie Mae
2007 12 04 U.S. mortgage giant in share issue

Freddie Mac
2007 11 20 Freddie Mac in $6bn share issue

GMAC
2007 11 01 GMAC, Radian Post Losses as U.S. Home Slump Deepens
2008 02 05 Sub-prime crisis hurts U.S. lender

Kensington
2007 05 30 Kensington agrees to £283m buyout

MBIA
2007 12 10 MBIA Gets $1 Billion From Warburg Pincus, Sees Losses
2007 12 19 Ambac, MBIA Outlook Lowered by S&P, ACA Cut to CCC
2008 01 31 MBIA Posts Biggest Loss, Considers New Capital Plans
2008 02 07 MBIA to Sell $750 Million of Stock to Avert Downgrade
2008 02 19 MBIA Former Chief Returns as Credit Rating Cut Looms
2008 04 04 MBIA Loses AAA Insurer Rating From Fitch Over Capital

New Century Financial
2007 03 12 New Century shares are suspended
2007 04 02 Top U.S. lender in Chapter 11 move

Radian Group
2007 08 07 MGIC may call off merger deal
2007 11 01 GMAC, Radian Post Losses as U.S. Home Slump Deepens

INVESTORS

Basis Capital
2007 08 29 Basis Yield Files Bankruptcy Over Subprime Defaults

Carlyle Capital
2008 03 11 Carlyle Fund Tries to Halt Liquidation
2008 03 14 Boss rues collapse of hedge fund

Peloton Partners
2008 03 06 High-profile hedge fund collapses

FOREIGN BANKS

CIBC
2008 01 07 CIBC Ousts Two Executives Amid Write-Downs

Credit Suisse
2007 11 01 After Write-Down, Credit Suisse’s Profit Falls 31%
2007 11 14 Credit Suisse Asset Write-Down Values Holding Up
2007 11 23 In Reversal, Safe Is Risky, Risky Is Safe
2008 02 19 Credit Suisse Reveals $2.85 Bln Writedowns
2008 02 20 New $2.8 Billion Write-Down Jolts Credit Suisse
2008 04 14 Credit Suisse to face writedown of 3-5
billion Swiss francs – report
2008 04 24 Credit Suisse Q1 writedowns of $5.3B drives $2.1B loss

UBS
2007 05 03 UBS to close its hedge fund arm
2007 10 01 Banks reveal U.S. mortgage losses
2007 12 10 UBS posts fresh $10bn writedown
2008 01 31 In Europe, Questions Over Continuing Write-Down
2008 02 14 UBS confirms sub-prime loss woes
2008 04 01 UBS doubles sub-prime writedowns
2008 04 01 UBS writes down another $19 billion
2008 04 01 UBS Says Ospel Resigns After Writedowns Lead to Loss
2008 04 17 Crisis-hit UBS to axe 900 London bank jobs
2008 04 20 Corroded to the core: How a staid Swiss bank let ambitions lead it into folly

Barclays
2007 08 21 Bank of England Lent Money at Emergency Rate
2007 11 15 Barclays reveals sub-prime losses

Bradford and Bingley
2008 02 13 Bradford & Bingley profits slide
2008 04 13 Bank denies cash-raising reports

HBOS
2007 08 21 HBOS forced to tap balance sheet in illiquid markets

HSBC
2002 11 14 HSBC pays £9bn for credit card group
2007 02 08 U.S. loan problems shake HSBC
2007 02 22 HSBC announces departure of two top executives at U.S. business
2007 03 04 U.S. triggers $11bn HSBC fall-out
2007 09 21 HSBC to Close U.S. Subprime Mortgage Unit, Cut Jobs
2007 09 25 HSBC’s Closes Decision One: Just the Tip of Its Subprime Iceberg
2007 11 12 HSBC expected to write down an extra $1bn
2008 03 03 HSBC in $17bn credit crisis loss
2008 03 03 HSBC hints at asset sales as writedowns mount

Lloyds TSB
2007 12 10 Lloyds TSB in £200m sub-prime hit
2008 02 22 Lloyds TSB shines through credit crunch chaos

Northern Rock
2007 09 14 Northern Rock Gets Emergency Bank of England
2007 09 15 Credit Crisis Hits Lender In Britain
2007 09 23 Ten days that shook the City
2007 10 10 Northern Rock deposits to be guaranteed by British government
2008 02 17 Northern Rock Nationalized as U.K. Rejects Virgin Bid

RBS
2007 12 06 RBS in £1.25bn credit crunch hit
2007 12 07 RBS says it knew sub-prime risk as it reveals £1.5bn of write-offs
2008 02 28 RBS profits rise 9 per cent despite £2.5 billion writedown
2008 04 17 RBS expected to ask investors for cash
2008 04 22 RBS aims to raise $24B in new capital

Commerzbank
2008 02 14 Writedown clouds Commerzbank gain

Deutsche Bank
2007 10 03 Less Harm Than Feared At Largest German Bank
2008 02 08 Deutsche Bank Escaped Subprime Loan Losses
2008 04 01 Deutsche Bank to write down $4B

Duesseldorfer Hypothekenbank
2008 04 22 Duesseldorfer Hypo Rescued by Bank Group After Crisis

IKB
2007 07 30 IKB Cuts Profit Forecast Amid Rout in U.S. Mortgages
2007 09 03 Sub-prime crisis to cost IKB $1bn
2007 03 20 IKB Seeks Fourth Bailout After Subprime Loss Widens
2008 04 07 Head of German bank KfW resigns amid problems at IKB bank

Sachsen Landesbank
2007 08 28 Sub-prime stricken Sachsen probed

WestLB
2007 08 08 German Fund Stops Payouts, Citing Mortgage Market Unease
2008 01 21 WestLB expects billion euro loss
2008 04 02 Exposure to U.S. market drops WestLB bank

BNP Paribas
2007 08 09 BNP Paribas Freezes Funds as Loan Losses Roil Markets

Credit Agricole
2008 03 05 Credit Agricole hit by sub-prime

Société Générale
2008 01 28 Scandal stings not just bank, but French pride, too
2008 04 17 Société Générale Chief to Step Aside

Bank of China
2007 09 04 China reserves ‘not in sub-prime’

JAPAN
2008 02 13 Japan’s sub-prime losses double