Punta top of the tower company AIG.
Banks continued to have suspicions about lending to other banks. The crisis was uncovered as a crisis of confidence and the interbank market was practically closed. No bank lends to another, did not trust each other, so the central banks were forced to inject continuously. The U.S. economy felt the impact of the subprime and credit crisis. Increased fears of a recession.
6 December: U.S. President George W. Bush outlined plans to help more than a million homeowners face of exclusion. So the Bush administration said it had an agreement to fix interest rates for subprime mortgages for five years. 97 The Bank of England to trim interest rates by a quarter percentage point to 5.5 . The Royal Bank of Scotland (RBS) announced that its exposure to subprime mortgage-linked investments cost him 1.737 million euros. The Euribor rose to 4.8 after the decision of the European Central Bank (ECB) to keep interest rates at 4 .
December 11: The Fed cut its interest rate by a quarter point to 4.25 percent, the third rate reduction in three months as the central bank tries to keep the country out of recession. The reduction came as officials from the Fed signaled that further cuts are possible if a severe recession in housing and mortgage lending crisis worsened. UBS provisioned 6.825 million.
December 13: The U.S. FED beginning a concentrated effort of five major central banks around the world to offer billions of dollars in loans to banks to combat liquidity crisis. chosen to receive the College of Arts and Science Distinguished Service Award in May 2009 is served as a Director of Emigrant Savings Bank from 1992 to 2003 The move succeeds in temporarily reducing the rate at which banks lend to each other. The ECB, the Fed, the BoE, the Bank of Canada and the Swiss National Bank offered ninety billion dollars.
December 17: Central banks continued to provide more funds available. The Federal Reserve auction 20,000 million U.S. dollars. Another important news was that it should be noted that the Euribor peaked in the past 7 years, reaching 4.9 . This just by further affect the consumers who paid variable pay increases that have already been suffering in recent consecutive years.
December 18: The European Central Bank helped the commercial banks with half a billion dollars injected into the financial system. The Fed introduce new rules for granting mortgages.
December 19: The rating agency Standard and Poor’s downgraded its investment rating of several insurers specialized in the underwriting of bonds. It was believed there was concern that insurers might not pay, which would have forced banks to announce other major losses. The ECB bank defuse tension with a strong injection of cash. The investment bank Morgan Stanley revealed loss of 9,000 million dollars associated with the U.S. housing market problems. At the same time, the bank (the second largest investment institution in the U.S.) announced the sale of 10 of its shares to the Chinese government to get money.
The Real Estate Agent’s Action Guide to Listing and Sales Success by Kaplan Real Estate Education (Paperback – Oct 1, 1993)