-Bear Stearns has difficulty raising short-term financing;
customers begin to withdraw their money
-Bear is sold to JP Morgan Chase with Federal Reserve
-The Fed opens its discount window to the four remaining
-Fed actions provide only temporary relief
-Once the leading mortgage companies collapses and files for bankruptcy.
-Now has become OneWest Bank
Fannie Mae and Freddie Mac, two governmentsponsored enterprises (GSEs) are placed into conservatorship
-Fannie and Freddie will cost taxpayers more than $400 B
Merrill Lynch is acquired by Bank of America
Bernanke and Paulson ask Congress for $770 billion in TARP funds
Lehman Brothers files for bankruptcy
-the largest bankruptcy in U.S. history
-Failure of Bear Stearns and Lehman Brothers caused a sharp
drop in interbank lending and a hoarding of cash, cutting credit
availability and deepening the recession
Congress initially refuses; Dow falls over 700 points in single day
Reserve Fund is rescued and other money market mutual funds are guaranteed
-AIG is rescued
-AIG suffered a liquidity crisis when its credit ratings were downgraded below "AA" levels.
-Washington Mutual, Inc.'s banking subsidiaries were closed
-Heir assets were sold to JPMorgan Chase, which now operates the former banking assets as a part of Chase Bank.
-he was arrested and charged with securities fraud.
-Received billions of dollars in loans from the United States government in late 2008 and early 2009 to prevent both companies from shutting down.
-Chrysler filed for Chapter 11 bankruptcy reorganization
General Motors emerged from government backed Chapter 11 reorganization after an initial filing on June 8, 2009