• 9/14: Lehman Brothers files for bankruptcy; Merrill Lynch is taken over by Bank of America
• 9/16: Fed bails out AIG for $85billion in return for a 79.9% equity stake
• 9/18: Lloyds TSB buys HBOS, Britain’s biggest home loan lender in an all share deal
• 9/20: Barclays buys Lehman’s U.S. broker-dealer operation; Bush administration presents $700 billion bailout bill to Congress
• 9/21: Morgan Stanley and Goldman Sachs are given approval to become bank holding companies regulated by the Fed; the investment banking era is over
• 9/22: Nomura Holdings buys Lehman Asia; later it buys Lehman Europe too
• 9/26: WaMu is closed by the U.S. Government; its assets are sold to J.P.Morgan chase for $1.9 billion
• 9/29: European governments scramble to shore up banks; House of Representatives rejects $700 billion bailout bill; global financial markets plummet
• 10/3: House of Representatives approves a revised bailout bill two days after the Senate approves it; Wells Fargo agrees to buy Wachovia for $16 billion
• 10/6: Dow Jones sinks below 10,000 for the first time in four years fearing a global recession
• 10/7: Iceland borrows 4 billion Euros from Russia to avoid national bankruptcy
• 10/8: Britain to inject 50 billion pounds into top banks following dramatic falls in the share prices of HBOS and Royal Bank of Scotland; Central banks around the world cut interest rates
• 10/10: Stocks fall 10% in Tokyo and 9% in London; Dow is 1.5% down after a day of record volatility
• 10/13: European governments pledge $1.3 trillion to banks sending stocks soaring once again
• 10/14: U.S. Treasury to inject $250 billion into banks in exchange for preferred shares.

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TED TALKS -The Global Power Shift

“The United States will remain the most powerful nation on Earth for the next 10, 15 years, but the context in which she holds her power has now radically altered.”

— Paddy Ashdown

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Works Cited