Financial system/Timelines: Difference between revisions
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* 1980 US Depository Institutions Deregulation and Monetary Control Act[http://www.bos.frb.org/about/pubs/deposito.pdf] | * 1980 US Depository Institutions Deregulation and Monetary Control Act[http://www.bos.frb.org/about/pubs/deposito.pdf] | ||
* 1984 Formulation of the "Too Big To Fail" doctrine[http://www.newyorkfed.org/research/staff_reports/sr220.pdf] | |||
* 1986 US Savings and Loans crisis[<ref>[http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf Timothy Curry and Lynn Shibut: ''The Cost of the Savings and Loans Crisis'', FDIC Banking Review, 2000]</ref>] | * 1986 US Savings and Loans crisis[<ref>[http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf Timothy Curry and Lynn Shibut: ''The Cost of the Savings and Loans Crisis'', FDIC Banking Review, 2000]</ref>] | ||
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* 1986 UK Building Societies Act [http://www.legislation.gov.uk/RevisedStatutes/Acts/ukpga/1986/cukpga_19860053_en_1][http://www.bsa.org.uk/policy/policyissues/constandcorpgov/nature.htm]<br> and stock exchange "Big Bang"[http://www.londonstockexchange.com/en-gb/about/cooverview/history.htm]. | * 1986 UK Building Societies Act [http://www.legislation.gov.uk/RevisedStatutes/Acts/ukpga/1986/cukpga_19860053_en_1][http://www.bsa.org.uk/policy/policyissues/constandcorpgov/nature.htm]<br> and stock exchange "Big Bang"[http://www.londonstockexchange.com/en-gb/about/cooverview/history.htm]. | ||
* 1987 Global stock market crash[http://people.few.eur.nl/smant/m-economics/crash1987.htm] | * 1987 Global stock market crash[http://people.few.eur.nl/smant/m-economics/crash1987.htm] and the beginning of a series of Scandinavian banking crises[www.finanzaonline.com/forum/attachment.php?attachmentid=889099&d=1211021661.] | ||
* 1987 First CDOs issued [http://www.bloomberg.com/apps/news?pid=20601109&sid=aRwVbC2GAzfE] | * 1987 First CDOs issued [http://www.bloomberg.com/apps/news?pid=20601109&sid=aRwVbC2GAzfE] | ||
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* 1989 LTCM hedge fund rescued[http://www.erisk.com/Learning/CaseStudies/Long-TermCapitalManagemen.asp] | * 1989 LTCM hedge fund rescued[http://www.erisk.com/Learning/CaseStudies/Long-TermCapitalManagemen.asp] | ||
* 1990-92 Scandinavian banking crises | |||
* 1997 First Credit Default Swap (CDS) issued[http://www.ft.com/cms/s/2/7886e2a8-b967-11da-9d02-0000779e2340.html?nclick_check=1] | * 1997 First Credit Default Swap (CDS) issued[http://www.ft.com/cms/s/2/7886e2a8-b967-11da-9d02-0000779e2340.html?nclick_check=1] | ||
Revision as of 08:05, 12 June 2009
(for an annotated timeline of bank failures and rescues see the timelines subpage of the article on that subject[1].)
1200 to 1933: financial turmoil
During this period, the banks introduced the banknote and the practice of leveraged lending, suffered frequent failures, caused periodical financial panics, prompted the creation of central banks and were occasionally rescued, but otherwise remained in largely unregulated "arms-length" relationships with their governments. A system of international finance emerged that was dominated by the gold standard. Financial instability culminated in the crash of 1929 and the Great Depression in the United States and its transmission to other countries by the operation of a mismanaged gold standard
(for an account of developments during this period see paragraphs 4.1 to 4.4 of the article on banking, and for the history of the gold standard during this period, see paragraph 2 of the article on the gold standard.)
- 1244 Genoa's Leccacorvo bank[2]
- 1609 Amsterdam Wisselbank founded[3] - the first central bank.
- 1637 Dutch tulip bubble[4]
- 1694 Formation of the Bank of England[5]
- 1717 Britain adopts the Gold standard[6]
- 1720 South Sea Bubble[7]
- 1864 US National Bank Act - established a national banking system and the chartering of national banks.
- 1837 US banking crisis
- 1844 UK Bank Charter Act
- 1866 Overend and Gurney bank rescued[[8]
- 1890 Barings bank rescued
- 1913 US Federal Reserve Act - established the Federal Reserve System [9]
- 1922 German hyperinflation[1]
- 1927 German stock exchange crash[10]
- 1929 Crash of 1929
- 1930 Great Depression
1933 to 1980: financial stability
- 1933 New Deal
US Glass-Steagall Act - created the Federal Deposit Insurance Corporation[11]. Separated commercial banking from investment banking.[[12]
- 1933 United States leaves the gold standard.
- 1944 Bretton Woods Agreement[13] US dollar convertible to gold at 35$/oz and other currencies fixed to dollar. International Monetary Fund created.
- 1971 The US dollar no longer convertible to gold[14]. Most exchange rates allowed to float.
- 1974 The Basel Committee for Banking Supervision[15] created.
1980 to 2007: deregulation, innovation and growth
A period of economic stability (known as the great moderation) and - following a global relaxation of banking regulations - of unprecedented growth of innovation, of national and international financial activity and of international financial imbalances; towards the end of which there developed increasing signs of financial instability.
- 1980 US Depository Institutions Deregulation and Monetary Control Act[16]
- 1984 Formulation of the "Too Big To Fail" doctrine[17]
- 1986 US Savings and Loans crisis[[2]]
- 1987 Global stock market crash[21] and the beginning of a series of Scandinavian banking crises[www.finanzaonline.com/forum/attachment.php?attachmentid=889099&d=1211021661.]
- 1987 First CDOs issued [22]
- 1988 Basel I[23] (The Basel Capital Accord)
- 1989 LTCM hedge fund rescued[24]
- 1990-92 Scandinavian banking crises
- 1997 First Credit Default Swap (CDS) issued[25]
- 1999 US Gramm-Leach-Bliley Act - repealed the Glass Steagall Act of 1933, and introduced other changes including expanding the Federal Home Loan Bank System.
- 1999 The Financial Stability Forum[28] created
- 1999 The European Monetary Union[29]
- 2006 Basel II[30] (Revised International Capital Framework]
2007 to 2009: financial turmoil again
- 2008 Crash of 2008
- 2009 Recession of 2009