Third quarter's events in the financial crisis

ByABC News
October 1, 2008, 12:47 PM

— -- Sept. 7:Fannie Mae and Freddie Mac are placed under government conservatorship in a federal takeover that all but wipes out stock investments in the companies.

Sept. 15:Lehman Bros. files for bankruptcy court protection, days after Treasury Secretary Henry Paulson ruled out any federal guarantee of a sale of the investment bank. Separately, Bank of America announces $50 billion stock purchase of Merrill Lynch.

Sept. 16:Reversing course, the Federal Reserve agrees to an $85 billion bailout that gives the government control of teetering insurance giant AIG.

Sept. 18:The Dow Jones industrial average soars 410 points, or 3.9%, following initial reports of Washington talks for a multibillion-dollar government rescue of the financial industry. Meanwhile, a nearly $300 billion Federal Reserve infusion fails to defuse rising fears in credit markets.

Sept. 19:Fed Chairman Ben Bernanke and Paulson brief congressional leaders on initial details of what will become a $700 billion bailout plan for the beleaguered U.S. financial industry.

Sept. 21:The Federal Reserve announces that Goldman Sachs and Morgan Stanley will become bank holding companies subject to increased regulation. The move, requested by the firms, was prompted by increased risk of their investment banking model.

Sept. 25:Federal regulators seize the assets of Washington Mutual, marking the largest bank failure in U.S. history.

Sept. 28:After days of negotiations, Congress releases details of the proposed $700 billion financial bailout.

Sept. 29:Citigroup buys Wachovia for $1 a share in a takeover arranged by the FDIC. The House of Representatives votes down the financial bailout legislation. The Dow Jones industrial average plunges nearly 778 points, wiping out $1.2 trillion in stock market wealth.

Market details for Q3