2008: An unforgettable year

Hurriyet Daily News with wires

BANK RUN IN THE UK

After the first bank run in more than a century, the British government decided Feb. 17 to nationalize the troubled mortgage lender Northern Rock. Buying stakes in other troubled lenders followed.

BEAR STEARNS DOWN

In March, JP Morgan Chase agreed to buy Bear Stearns, the fifth largest investment bank in the United States. JP Morgan paid $236 million for the firm, valuing it at $2 per share, compared with $169 in January.

NATIONALIZATION

In September, the U.S. government seized control of government sponsored mortgage financiers Fannie Mae and Freddie Mac, agreeing to invest as much as $100 billion in each if necessary.

LEHMAN FALLS, AIG SAVED

Lehman Brothers filed for bankruptcy on Sept. 15. The next day, the U.S. government bailed out insurance giant American International Group for $85 billion. Merrill Lynch was bought by Bank of America.

STATE TO THE RESCUE

The U.S. Treasury organized a $700 billion bailout package for the financial sector with its Troubled Asset Relief Program, or TARP. Coordinated interest rate cuts, currency swaps and other measures were also used.

WaMu, WACHOVIA SOLD

In September, JP Morgan Chase acquired the banking operations of Washington Mutual, after it was seized by U.S. regulators. In October, Wells Fargo sealed a deal to buy rival Wachovia for $11.7 billion.

ICELAND IMPLODES

In October, Iceland’s economy nearly collapsed after the U.S. let Lehman fail, triggering a seizure of credit markets. Iceland’s banks failed one after the other, forcing the government to borrow from the IMF.

US IN RECESSION

The authoritative United States National Bureau of Economic Research announced in December that the world’s biggest economy had been in recession since December 2007.

THELASTSCANDAL

On Dec. 11, respected fund manager Bernard Madoff was arrested on suspicion of running a pyramid scheme. Those who invested in Madoff’s fund were estimated to have lost nearly $50 billion.