US, European rescue plans since August 2007



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PARIS, Oct 8, 2008 (AFP) - Authorities in the United States and Europe have stepped up urgent intervention to sustain their finance sectors since the start of a financial crisis in August 2007. Here are the principal actions taken to date.

-- A loan of 30 billion dollars from the Federal Reserve, the US central bank, to JPMorgan Chase to help it acquire investment bank Bear Stears, March 16.

-- The nationalisation of troubled mortgage guarantors Freddie Mac and Fannie Mae, September 7.

-- Nationalisation of insurer AIG in exchange for a loan of 85 billion dollars from the Federal Reserve, September 16.

-- Federal government seizure of the assets of Washington Mutual ahead of their sale to rival JPMorgan Chase for 1.9 billion dollars, September 25.

-- US Congressional approval for a plan drafted by Treasury Secretary Henry Paulson, but later modified, for the government to spend up to 700 billion dollars to buy up soured mortgage-backed debt held by banks -- obligations that have prevented banks from lending, October 3.

-- Nationalisation of mortgage lender Northern Rock, February 17.

-- Nationalisation of Bradford and Bingley, with its key assets sold to Spanish bank Santander, September 29.

-- The government announces plans to make 50 billion pounds available to eight of the country's largest banks, an intervention that will mean their partial nationalisation, October 8.

-- The government agrees to guarantee the retail and commercial deposits, as well as bonds, held by six leading banks for a period of two years.

-- Nationalisation of the country's second and third largest banks, Landsbanki and Glitnir, October 7 and 8.

-- A loan of 500 million euros to the leading bank, Kaupthing Bank, October 7.

NETHERLANDS, BELGIUM, LUXEMBOURG, FRANCE

-- The rescue of Fortis bank by Belgium, the Netherlands and Luxembourg, September 29.

-- Nationalisation of the Dutch assets of Fortis by the Netherlands, October 3.

-- The Belgian and Luxembourg activities of Fortis are acquired by French bank BNP Paribas.

-- Nationalisation of French-Belgian bank Dexia by authorities in France and Belgium in exchange for an injection of 6.4 billion euros. Luxembourg provides 400 million euros, September 30.

-- The federal government shores up the IKB bank with assistance of 7.0 billion euros ahead of its sale to US investment fund Lone Star, August 21. The state agrees to guarantee any new losses up to 600 million euros.

-- The state agrees to a 27-billion-euro guarantee behind a plan to rescue Munich bank Hypo Real Estate, September 29.



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