The 2008-2009 global financial crash, also known as the Great Recession, was a severe [economic]( crisis that originated in the United States but had worldwide repercussions. Although the crisis was complex and multifaceted, it was largely caused by the collapse of the U.S. housing market, which led to a series of events that negatively impacted financial markets, economies, and businesses around the world. Here is a general timeline of key events leading up to and during the crisis: 1. **Early 2000s**: The U.S. housing market booms, fueled by low-[[interest rates]], relaxed lending standards, and an influx of subprime mortgages. 2. **2004-2006**: The [[Federal Reserve]] raises interest rates, leading to higher monthly payments for adjustable-rate mortgage holders. 3. **2007**: - *February*: HSBC, one of the world's largest banks, issues a profit warning due to significant losses in its U.S. subprime mortgage portfolio. - *April*: New Century Financial Corporation, a major subprime mortgage lender, files for [[bankruptcy]]. - *June*: Bear Stearns, a leading U.S. investment bank, announces the collapse of two hedge funds heavily invested in subprime mortgages. - *August*: BNP Paribas, a French bank, freezes three investment funds, citing difficulties in valuing U.S. subprime mortgage assets. 4. **2008**: - *March*: Bear Stearns is acquired by JPMorgan Chase with the help of the Federal Reserve to avoid bankruptcy. - *July*: The U.S. government seizes control of IndyMac Bank, a major mortgage lender, due to its insolvency. - *September*: - Fannie Mae and Freddie Mac, two government-sponsored mortgage finance companies, are placed into federal conservatorship. - Lehman Brothers, a major U.S. investment bank, files for bankruptcy. - Bank of America acquires Merrill Lynch, another large U.S. investment bank. - The U.S. [[Federal Reserve]] provides an emergency loan to American International Group (AIG), a major insurance company, to prevent its collapse. - *October*: The U.S. government passes the Emergency Economic Stabilization Act, creating the Troubled Asset Relief Program (TARP) to provide financial support to struggling financial institutions. 5. **2009**: - *February*: The American Recovery and Reinvestment Act is signed into law, providing a $787 billion economic stimulus package to boost the U.S. economy. - *April*: The G20 summit in London results in a coordinated international response to the crisis, with a commitment to increase funding for the [[International Monetary Fund (IMF)]] and to provide financial support for developing countries. The crisis resulted in a global economic downturn, massive job losses, and significant regulatory reforms aimed at preventing a similar crisis from occurring in the future.