Countdown to crisis

How the crisis unfolded

How the crisis unfolded

SUNDAY SEPTEMBER 14th:Investment bank Lehman Brothers files for bankruptcy protection. Rival Merrill Lynch agrees to be taken over by Bank of America.

MONDAY SEPTEMBER 15th:Insurer American International Group (AIG), says it is struggling for survival after losing some 92 per cent of its value this year.

TUESDAY SEPTEMBER 16th:The US Federal Reserve Board says the Federal Reserve Bank of New York will lend up to $85 billion to AIG, in a plan aimed at saving the company from a "disorderly failure" that could damage the global economy.

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WEDNESDAY SEPTEMBER 17th:British bank Lloyds TSB agrees to buy rival HBOS plc, scooping up Britain's biggest home loan lender in an all-share deal which values HBOS at over £12 billion ($22.3 bn).

THURSDAY SEPTEMBER 18th:The Financial Regulator introduces a temporary ban on short-selling Irish financial stocks. The UK Financial Services Authority imposes a temporary ban on short-selling financial stocks.

FRIDAY SEPTEMBER 19th:US treasury secretary Henry Paulson calls for the US government to spend hundreds of billions of dollars to take toxic mortgage assets off the books of financial firms to restore financial stability.

SATURDAY SEPTEMBER 20th:The Government increases the threshold for deposit protection insurance from €20,000 to €100,000. Minister for Finance Brian Lenihan says: "The Government is confident about the strength and resilience of the Irish financial system."

The Bush administration asks Congress for $700 billion to bail out firms burdened with bad mortgage debt, seeking extraordinary authority. Henry Paulson will have sweeping powers over the funds.

A US bankruptcy judge approves a revised version of British bank Barclays plc's purchase of the core US business of Lehman worth about $1.75 billion.

SUNDAY SEPTEMBER 21st:Goldman Sachs and Morgan Stanley are granted approval to become bank holding companies regulated by the Fed, effectively killing off the investment banking model.

MONDAY SEPTEMBER 22nd:Nomura Holdings Inc says it will buy Lehman's franchise in Asia Pacific, including Japan and Australia and 3,000 staff. It also acquires Lehman's business in Europe. Morgan Stanley agrees to sell an equity stake of as much as $8.5 billion to top Japanese bank Mitsubishi UFJ Financial Group Inc.

TUESDAY SEPTEMBER 23rd:Henry Paulson tells lawmakers a bailout is "embarrassing" but is needed to stave off a deep recession and restore confidence.

WEDNESDAY SEPTEMBER 24th:Warren Buffett's Berkshire Hathaway says it will buy up to 9 per cent of Goldman, which also announced plans to sell $2.5 billion in common stock.

FRIDAY SEPTEMBER 26th:Washington Mutual is closed by the US government, in by far the largest failure of a US bank. Banking assets are sold to JPMorgan Chase for $1.9bn.

SUNDAY SEPTEMBER 28th:Congressional leaders from both parties say they have a tentative agreement on the $700 billion fund.

MONDAY SEPTEMBER 29th:Britain announces the nationalisation of mortgage lender Bradford Bingley. Spanish bank Santander will buy its retail deposits and branch network.

The Belgian, Dutch and Luxembourg governments agree to inject €11.2 billion into Benelux banking and insurance company Fortis.

The House of Representatives was expected to approve the $700 billion rescue fund.

TUESDAY SEPTEMBER 30th:Irish Government announces that it is to guarantee the loans and deposits of six Irish-owned banks and building societies.