Anatomy of a downturn
Download
1 / 7

Anatomy of a downturn A closer look at the global ‘credit crunch’ - PowerPoint PPT Presentation


  • 101 Views
  • Uploaded on

Anatomy of a downturn A closer look at the global ‘credit crunch’. Governments in Great Britain, Belgium, the Netherlands and even Iceland have been forced to bail out some of their biggest banks. The Rudd Government has moved to protect bank deposits for the next 3 years.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Anatomy of a downturn A closer look at the global ‘credit crunch’' - marina


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Anatomy of a downturn

A closer look at the global ‘credit crunch’


Governments in Great Britain, Belgium, the Netherlands and even Iceland have been forced to bail out some of their biggest banks

The Rudd Government has moved to protect bank deposits for the next 3 years

The ‘credit crunch’ may have its roots in the US, but it’s now a global problem

Importantly, the Australian banking system, which is more regulated than that in the US, has held up very well


Anatomy of a downturn even Iceland have been forced to bail out some of their biggest banksa closer look at the global ‘credit crunch’

January 2008

March 2007

JP Morgan buys US investment

bank Bear Stearns in an

‘emergency’ rescue deal

US Federal Reserve provides

US$200 billion to commercial

banks in another bid to free up

market liquidity

US Federal Reserve cuts

interest rates by 0.75% amid

fears the US economy could

fall into recession


Anatomy of a downturn even Iceland have been forced to bail out some of their biggest banksa closer look at the global ‘credit crunch’

April 2008

September 2008

7 September 2008

US government seizes control of mortgage lenders Fannie Mae and Freddie Mac

15 September 2008

Lehman Brothers files for bankruptcy. Merrill Lynch is

bought by Bank of America for US$50 billion

16 September 2008

American International Group (AIG), the US’s biggest insurer, receives an US$85 billion loan from the US Federal Reserve to stave off bankruptcy

28 September 2008

US bank, Washington Mutual, is seized by US regulators in the biggest US bank failure in history

International Monetary Fund warns losses related to the ‘credit crunch’ could top US$1 trillion


Anatomy of a downturn even Iceland have been forced to bail out some of their biggest banksa closer look at the global ‘credit crunch’

September 2008

28 September 2008

Britain, Belgium and the Netherlands are

forced to bail out several major banks. US government announces US$700 billion plan

to rescue Wall Street

29 September 2008

Citigroup bids for US bank Wachovia in a deal backed by US authorities

US House of Representatives narrowly rejects the US$700 billion bailout plan by a vote of 228-205, sending global share markets tumbling

30 September 2008

$55 billion dollars is wiped off the Australian share market in a single day

One day later, the market recovers by more than 4%


Anatomy of a downturn even Iceland have been forced to bail out some of their biggest banksa closer look at the global ‘credit crunch’

October 2008

3 October 2008

After a second vote, the US House of Representatives passes the US$700 billion bailout plan

6 - 10 October 2008

Concerns that bailout plan won’t prevent a global recession sends global shares sliding:

Japan -24.3%

Europe -22.2%

UK - 21.0%

US -18.2%

Australia -15.6%


The list of casualties keeps growing … even Iceland have been forced to bail out some of their biggest banks


ad