Banking Crisis Timeline
How the credit crunch has led to dramatic, unprecedented events in the City, on Wall Street and around the world
Guardian – Thursday October 30 2008 15.00 GMT
Thursday October 30
Alistair Darling urged banks to use a £4bn package of support from the European Investment Bank to help small and medium-sized businesses through the credit crunch. The chancellor also called on oil companies to pass on lower costs to consumers.
Deutsche Bank reported steep falls in pre-tax and net profits and a further series of writedowns in the third quarter.
Wednesday October 29
The US Federal Reserve cut interest rates by a half point, trying to avert a prolonged economic downturn in the wake of the financial crisis.
Monetary policy committee member David Blanchflower said the Bank of England failed to respond to the warning signs of a looming recession and wrongly delayed cutting interest rates.
Alistair Darling defended the government’s move to raise borrowing to help the economy, saying it would be “perverse” to apply the fiscal rules rigidly in the current turbulent times.
The International Monetary Fund, the European Union and the World Bank announced a massive rescue package for Hungary.
The prospect of fresh cuts in interest rates on both sides of the Atlantic helped propel Wall Street stocks to a dramatic rebound, with the Dow scoring its second-biggest points gain ever, just short of 900.
Volkswagen, the business that gave the world the Beetle and the camper van, found itself the most valuable company in the developed world as a bout of financial speculation went spectacularly wrong.
Britain’s retailers were gearing themselves up for one of the most difficult Christmas trading periods of recent years, after the latest snapshot of the high street from the CBI found that fear of unemployment was curbing spending.
Tuesday October 28
Autumn’s market mayhem has left the world’s financial institutions nursing losses of $2.8tn, the Bank of England said, as it called for fundamental reform of the global banking system
Monday October 27
Shares in Asia suffered sharp falls and the FTSE 100 was down 200 points at one stage, although it ended only around 30 points lower.
The spectre of a cascade of failing economies from the Baltic to Turkey was raised as a $16.5bn IMF bailout for Ukraine was mired in political infighting and Hungary sought its own $10bn rescue package.
GKN warned that plummeting demand from the world’s carmakers was biting into profits and forcing it to shed 1,400 jobs in its automotive components businesses.
Friday October 24
Shares and the pound slumped as official government figures confirmed that the UK economy was shrinking, with the biggest drop in GDP since 1990.
Thursday October 23
Former Fed chief Alan Greenspan admitted he had been “partially wrong” in his hands-off approach towards the banking industry. The credit crunch had left him in a state of “shocked disbelief,” he admitted before a congressional committee.
Goldman Sachs said it was to cut one-in-10 of its global workforce, likely to lead to 600 job losses in London.
The grisly conditions facing UK retailers were underlined when DSG, which operates Currys and PC World, revealed a big drop in sales of TVs and computers.
Daimler, maker of Mercedes cars, issued its second profits warning this year after third-quarter earnings plunged by two-thirds.
Wednesday October 22
Thousands of workers at the manufacturing firm JCB voted to accept a pay cut of £50 a week to prevent the loss of 350 jobs.
The stricken US bank Wachovia reported the biggest quarterly loss of any bank since the onset of the credit crunch, with a deficit of $24bn – more than the total price being paid for the North Carolina lender by its rival Wells Fargo.
Pakistan sought emergency bail-out funds from the IMF
Tuesday October 21
The Bank of England governor Mervyn King hinted at fresh interest rate cuts admitted “it now seems likely that the UK economy is entering a recession” in a speech to business leaders in Leeds.
Monday October 20
Gordon Brown told MPs that if the government had not acted to stabilise the banking system, Britain’s financial difficulties would have been “even more severe”.
His statement came after figures showed the public finances lurched to a record deficit last month.
China warned the financial crisis was damaging its economic growth.
Mortgage lending slumped by 10% in September to its lowest level for more than three-and-a-half years.
Sunday October 19
Details emerged that Dutch savings bank ING was to get a €10bn (£7.7bn) capital injection from the Netherlands authorities.
Alistair Darling said the government would inject billions into the public sector to boost the economy, bringing forward large construction projects. However, it was reported that Britain’s most expensive road improvement programme, the £5bn upgrade of the M25, was struggling to raise finance.
Saturday October 18
The Guardian reflected on the week in which global catastrophe was averted.
Friday October 17
Lord Adair Turner, the Financial Service Authority chairman, told the Guardian that the days of soft-touch regulation were over, warning the City that higher-paid regulators would ask tougher questions in the wake of the credit crisis.
The Guardian learned that workers at Wall Street’s top banks were to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, despite the global financial crisis.
The Dow Jones fell again but the FTSE closed up 201 points at 4063 – a 5.2% gain.
Thursday October 16
The Dow Jones industrial Average shook off a mood of despondency to make strong gains, jumping by 401 points to 8979. Earlier, Japan’s Nikkei suffered its worst fall since 1987 and the FTSE 100 index slumped by 218 points to 3861.
The Bank of England announced new rules intended to bring an end to the paralysis which has gripped the money markets.
An EU summit ended in Brussels with a clear message that there was no time to lose in coming up with concerted action to tackle the financial emergency.
In Switzerland, UBS received a capital injection from the government, while Credit Suisse raised money from private investors and a sovereign wealth fund.
In America, Citigroup suffered its fourth consecutive quarterly loss after taking hits of more than $13bn to cover liabilities arising from the credit crunch.
In Japan, the prime minister, Taro Aso, dismissed the US bank bail-out as “insufficient”, in the first real sign of a split among the world’s richest countries on how to address the credit crunch and looming global recession.
Opec called an emergency meeting in Vienna as the oil price fell to less than half the $147 it traded at in July.
Wednesday October 15
The FTSE suffered its fifth biggest fall in history, closing down 7.16% at 4079.5 – a 315-point fall – more than wiping out all of Tuesday’s gains. On Wall Street, the Dow Jones industrial average dropped by 7.8%.
Unemployment figures in the UK showed the biggest rise since the country’s last recession 17 years ago, up to 5.7% – 1.79 million people.
Meanwhile, pressure was mounting on the government to renegotiate the terms of the part nationalisation of the UK banking sector.
Iceland rushed to stave off economic ruin by slashing interest rates by 3.5% and pursuing talks with Russia over the possibility of a multibillion euro loan.
Tuesday October 14
Shares in Asia, London and the rest of Europe rallied for a second day as the financial world waited for America to follow Britain’s lead and partially nationalise its banks.
The Icelandic stock exchange resumed trading for the first time since last Wednesday, but six financial stocks remained suspended. The stockmarket plummeted 76% after the open.
Afternoon: Meetings between the US government and the heads of major banks were held in Washington.
Monday October 13
The government announces it will pump £37bn of emergency recapitalisation into the Royal Bank of Scotland, HBOS and Lloyds TSB.
10.30am BST: At a Downing Street press conference, Gordon Brown says the unprecedented cash injection into the UK banking sector was essential and he predicts other countries will follow Britain’s lead. “The government cannot just leave people on their own to be buffeted about,” he says.
RBS, which will get £20bn from the taxpayer, announces chief executive Sir Fred Goodwin and chairman Sir Tom McKillop are stepping down.
In Iceland, the authorities edge closer to a deal to repay savers, but have no plans to reimburse charities and councils. Meanwhile, UK magnate Sir Philip Green is looking into opportunities provided by the crisis in Reykjavik.
The 15 members of the eurozone, led by Germany and France, unveil large, coordinated plans along British lines to provide their banks with capital funding.
The prospect of governments pumping vast sums into banks on both sides of the Atlantic sends stocks soaring. The FTSE 100 closes 325 points higher at 4256.9, a rise of 8.3%.
The Dow Jones rockets by 936 points to 9387, its biggest one-day gain by points. It closes up 11%, the largest daily jump in percentage terms since 1933.
Sunday October 12
Gordon Brown travels to Paris where European officials are desperate to prevent a continent-wide meltdown in the banking sector. He succeeds in persuading the EU’s core countries to adopt a plan along the lines of his £500bn banking system bail-out.
Lloyds TSB considers renegotiating the terms of its takeover of HBOS.
Saturday October 11
Alistair Darling attends meetings in Washington with the G7 finance ministers and the IMF. The G7 comes up with a five-point plan, which includes spending billions of taxpayers’ money to rebuild the global banking system and reopen the flow of credit.
The head of the IMF, Dominique Strauss-Kahn tells a Washington meeting: “Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown.”
Friday October 10
A global rout starts in Asia as recession fears deepen, with Japan’s Nikkei index falling almost 10%, its biggest drop for 20 years.
Singapore officially slides into recession on the back of falling demand for manufacturing exports from US and Europe.
8.07am BST: The FTSE 100 plunges more than 10% to 3847 points, careering through the 4,000 mark for the first time in five years. The sell-off wipes more than £100bn off the value of Britain’s biggest companies.
Oil prices slump as energy watchdog drops demand forecast. Prices tumble by almost $5 a barrel to a one-year low amid growing fears that the deepening financial crisis will squash demand for fuel.
2.40pm BST: The Dow crashes nearly 700 points to 7882 in the first few minutes of trading, a fall of 8%. President Bush urges confidence in the US government’s ability to manage the worsening financial crisis, but his words have little effect.
5.10pm BST: The FTSE 100 closes 8.85% lower at 3932.1 – a 381.7 point fall, wiping about £89.5bn off the value of Britain’s biggest companies. This is the worst daily fall since the crash of 1987, beating Monday’s 7.85% decline.
Thursday October 9
House prices fall at record rate during the year to the end of September, losing 13.3% of their value, Halifax reports.
Gordon Brown tells GMTV that bankers who hadveacted irresponsibly and taken excessive risks deserve to be “punished”. The prime minister says he is “angry at irresponsible behaviour” and that the days of big bonuses in the City are over.
Stock markets calm after the turmoil. The FTSE 100 jumps 61 points by midday. Banks continue to recover following the UK goverment’s £500bn rescue plan announced the previous day.
Tories claim that councils “could lose £1bn” because of the collapse of Icelandic banks.
The International Monetary Fund announces emergency plans to bail out governments affected by the financial crisis, after warning that no country would be immune from the ripple effects of the credit crunch.
Gordon Brown goes on tour to explain the bank bail-out, with a podcast and regional tour to explain the government’s £500bn banking rescue package to the public.
The Icelandic prime minister says chancellor Alistair Darling is going to send a team to Iceland to work on the stricken economy’s financial issues.
The London market fails to hold on to early gains. With Wall Street in decline yet again in early trading, the FTSE 100 ends 52.9 points lower at 4313.8, its lowest level since August 13 2004. Since the start of yet another tumultuous week, the leading index has lost almost 700 points. The Dow falls to a five-year low, ending the day day 7.3% at 8579 points.
Wednesday October 8
7.30am BST: The Treasury announces what amounts to a £500bn bank rescue package to stop the country’s financial system melting down. Most bank shares fall again.
8.30am BST: Darling confirms that the government will guarantee no retail depositor with the internet bank Icesave will lose their money.
12pm BST: The Bank of England, the US Federal Reserve and the European Central Bank all cut half a point off their key interest rates in the first unscheduled rate moves since the aftermath of 9/11.
12.15pm BST: Brown confirms at Commons question time that banks benefiting from the government’s rescue package will be forced to accept strict conditions on bonuses.
Councils call for protection from the Icelandic bank collapse. LGA asks for meeting with Alistair Darling after he suggests that councils will not benefit from compensation.
London shares are in the red despite rate cuts. The FTSE 100, after rocketing into positive territory after the shock rate cut move, was down by 158 points at 4446, a fall of 3.5%, by mid-afternoon. On Wall Street, the Dow Jones initially dropped more than 200 points, but later the index was up 44 points at 9491.
UK government announces that it might sue Iceland over any lost bank savings. The prime minister and chancellor threaten legal action over any losses incurred by British citizens as banks are nationalized.
Icesave accounts are declared in default. This move triggers Financial Services Compensation Scheme which will return 100% of savers’ money.
The FTSE 100 closes down 238.5 points at 4366.7, a 5.2% decline and its lowest level since 19 August 2004. Around £57bn is wiped off the value of Britain’s top companies.
Dow slides 189 points despite global interest rate cuts. It has fallen or six successive days, losing 14.7% of its value.
Tuesday October 7
5pm BST: The prime minister, the chancellor, the governor of the Bank of England and the chairman of the Financial Services Authority hold talks at No 10. Darling says afterwards that he wants to “put the banks on a longer-term sound footing”.
7.30pm BST: Darling confirms the government will make a historic announcement tomorrow on changes to the banking system. It is thought it will involve using £50bn of taxpayers’ money to take a major stake in high street banks.
Monday October 6
The FTSE sees its largest one-day points fall. Alistair Darling tells MPs he will do “whatever is necessary” to bring stability to the banking system, but does not announce specific new initiatives.
Sunday October 5
Angela Merkel, the German chancellor, says that deposits in German bank accounts will be secure.
Saturday October 4
Brown attends an emergency summit in Paris to discuss the crisis with his French, German and Italian counterparts.
Friday October 3
The government rushes through an increase to £50,000 of guarantees for British bank deposits.
US jobs data are worse than expected.
Thursday October 2
The US Senate has voted in favour of the Wall Street bail-out.
European leaders are considering their own bail-out, which could cost up to €300bn (£237bn). The French president, Nicolas Sarkozy, leads the push.
Economists are certainly in favour of such a move.
Gordon Brown’s imminent cabinet reshuffle is expected to create an emergency committee that will take charge of the government’s response to the financial crisis.
Marks & Spencer becomes the latest retailer to feel the icy chill of the gloomy economic climate as it admits shoppers are going to cheaper rivals.
Hopes that the US deal may get through help shares prices recover somewhat in London.
But by the close of play, Wall Street still has the jitters.
Wednesday October 1
The FSA starts talks with the banks about raising its level of savings protection from £35,000 to £50,000 to stop the rot.
That may be too little too late for some people who are already moving their cash into gold.
Things are going from bad to worse at Fortis as the ailing Belgo-Dutch bank is forced to shelve the sale of around €3bn in shares because no one wants to buy them.
It’s back to the 1970s in the UK as car manufacturers introduce reduced working hours and new data shows British manufacturing shrinking at the fastest rate since records began nearly 17 years ago.
Share traders are praying that a rescue package can still be put together in the US.
The high street fashion chain Miss Sixty goes under.
Reassuring words from Gordon Brown about the deal with LLoydsTSB help shares in HBOS recover.
Warren Buffett decides to snap up $3bn worth of General Electric as part of a $15bn fundraising by the industrial conglomerate.
Tuesday September 30
Asian stock markets are the first to react to the shock news that the $700bn Wall Street bailout has failed. When London opens it is carnage with banking shares clobbered.
The stock market’s fall raises further questions about the LloydsTSB/HBOS deal.
The Irish government takes the unprecedented step of guaranteeing retail deposits for the next two years.
Dexia, the troubled Belgo-French municipal lender, has to be bailed out.
It’s worse in the US where July has reported the biggest ever fall in house prices.
Anyone who does have savings is trying desperately to find a safe haven with government-backed National Savings & Investments swamped by savers.
The banks themselves are finding it increasingly difficult to raise financing with the cost of inter-bank borrowing experiencing its biggest ever one-day rise.
Dominique Strauss-Kahn, the managing director of the IMF, believes a bail-out is the only option for the US economy.
Monday September 29
As news of the Bradford & Bingley rescue sinks in, the London stock market plummets in what will end up being one of the FTSE 100 index’s worst ever trading days.
Banking shares plunge, putting the proposed rescue of HBOS by LloydsTSB in doubt.
Royal Bank of Scotland sees its shares lose a fifth of their value and remember: short selling is banned, this is not market spivs trying to make a packet but a growing realisation that no bank is safe.
As a result of the intense fear among bankers about which institution will be next to fold, the interbank lending rate goes through the roof despite desperate attempts by Central Banks to pump cash into the system.
The German government and other banks throw a €35bn (£28bn) lifeline to Hypo Real Estate, the second-largest commercial property lender in the country.
In the US, Citigroup snaps up troubled bank Wachovia.
Apple shares plummet as analysts worry about the lure of its gadgets at a time when consumers are facing home repossessions and fearing for the jobs.
George Bush takes the podium to urge the House of Representatives to pass the $700bn bail-out plan. His short speech falls on deaf ears and a few hours later the House of Representatives votes the bail-out down.
Wall Street has a fit. The Dow Jones plunges 777 points, its biggest ever fall in points terms.
Sunday September 28
Spain’s Santander buys Bradford & Bingley’s 200 branches and £22bn savings book and the UK taxpayer gets lumbered with the mortgages.
MFI’s managers ride to the rescue of the troubled furniture chain
In the US, the House speaker, Nancy Pelosi, pleads with representatives to pass the now 100-page plan to save Wall Street.
The Tory leader, David Cameron, tells the Conservative party faithful that Gordon Brown has “had your boom and now your reputation is bust”.
Across the Channel, the storm clouds are growing over Belgian-Dutch financial group Fortis which is looking for a rescue partner.
Saturday September 27
Desperate talks are held over the weekend between the FSA, Treasury and various banks to try and find a solution to the plight of Bradford & Bingley whose shares collapsed on Friday.
Friday September 26
America’s biggest savings and loan company, Washington Mutual – or WaMu – is seized by federal regulators overnight and sold to JP Morgan for $1.9bn in a deal that sends shockwaves through Wall Street and main street alike.
In the UK, HSBC axes 500 investment banking jobs while home textiles retailer Rosebys calls in the administrators, putting 2,000 jobs at risk.
The Queen’s dressmaker, Hardy Amies, teeters on the brink of collapse after its Icelandic backer stops funding it
In a speech at the UN, Gordon Brown calls for an end to the “age of irresponsibility”.
Traders are worried about the possible failure of the $700bn bail-out plan and the FTSE 100 slides into the red again. The plan appears to be coming apart despite Paulson actually begging on one knee for the deal to be passed.
Thursday September 25
Dr Rowan Williams, the Archbishop of Canterbury, wades into the debate, calling for tighter regulation of a financial industry that has been allowed to run away with itself.
Ireland becomes the first state in the eurozone to fall into recession.
Jobless figures are up and orders are down in the US, signalling the dire state of the economy.
Even one of America’s largest companies, GE, is not immune from the “unprecedented weakness and volatility” of the world’s financial markets and profits slide
Bradford & Bingley axes 370 jobs, which adds to speculation that it is looking for a buyer.
Overnight the $700bn bail-out plan in the US appears to have stalled.
Wednesday September 24
Warren Buffett invests $5bn (£2.7bn) in Goldman Sachs and warns that failure to agree a $700bn bailout could result in an “economic Pearl Harbour”.
The FBI starts an investigation into Fannie Mae and Freddie Mac, AIG and Lehman Brothers over their role in the sub-prime mortgage crisis
CBI figures show high street sales continued to decline in August.
The Council of Mortgage Lenders admits that in the current turmoil it is “futile” trying to predict where house prices are headed.
Henry Paulson bows to intense pressure to include limits on what Wall Street bankers can be paid in his $700bn bail-out plan.
Gordon Brown tells world leaders in New York that an international regulator may be needed to stop the mess being repeated.
Tuesday September 23
New figures show UK mortgage approvals hit a record low in August.
Nomura buys Lehman Brothers’ UK operations, saving 2,500 City jobs.
The FSA starts to name and shame the bank short-sellers.
Gordon Brown tells the Labour party conference this is a time for experience, not a novice in No 10.
Monday September 22
Morgan Stanley and Goldman Sachs give up their status as investment banks and become traditional commercial banks that accept deposits from ordinary people and businesses, marking a dramatic change in the make-up of Wall Street.
Japan’s Nomura buys Lehman Brothers’ Asian operations.
Robert Willumstad, the departing head of AIG, gives up his $22m (£12m) golden parachute.
Alistair Darling tells the Labour party conference that the City’s bonus culture cannot continue.
Sunday September 21
The Financial Services Authority holds crisis talks over a possible bail-out of Bradford & Bingley, which has seen its shares plunge 90% this year so far.
The administrator PWC battles to sell Lehman Brothers’ UK operations.
Saturday September 20
The US treasury secretary, Henry Paulson, spends the weekend trying to thrash out his $700bn “bad bank” plan.
Friday September 19
7am BST: Asia starts the recovery, with the Nikkei closing up 431 points at 11,920.
8am BST: FSA names the 29 firms it hopes to save by banning short-selling.
10.30am BST: Russian stock markets bounce back after the government pledges 500bn roubles to fight the crisis.
Government rushes through increase in guarantees for British bank deposits to £50,000.
Wells Fargo scuppers Citigroup’s takeover of Wachovia.
9pm BST: On Wall Street, the DJIA closes at 11388.44, up 368.75 points.
Thursday September 18
6am BST : Russian stock markets remain closed for a second day. More panic in Asia, where the Nikkei drops 260 points to 11,489.
7am BST: £12.2bn takeover of HBOS is announced to the City, amid fears of massive job cuts.
8.30am BST: As the FTSE keeps falling, the chancellor, Alistair Darling, insists we can ride out the storm.
9am BST: Gold is at a six-week high as investors flee shares and pile into commodities.
10am BST: Central banks around the world pump $180bn into the system in a concerted effort to end the crisis.
11am BST: India’s stock market fluctuates wildly – with shares plunging before recovering after the government promises to help.
Noon BST: The Lloyds CEO, Eric Daniels: “This is a unique moment in time when we could make it happen.”
1pm BST: Gordon Brown vows to end “irresponsible behaviour” in the City.
2pm BST: Christopher Cox, America’s most senior financial markets regulator, takes aim at short sellers.
3pm BST: Goldman Sachs and Morgan Stanley shares fall sharply again on Wall Street.
4.30pm BST: London’s relief rally does not last, as the FTSE 100 closes 32.4 points lower at 4880.0.
5pm BST: With £2bn wiped off the value of Lloyds, analysts question whether the deal makes sense.
6pm BST: UK’s Financial Services Authority announces a ban on the short-selling of bank shares.
9pm BST: Wall Street closes 410 points higher as the US Federal Reserve starts briefing on an ambitious plan to create a federal “bad bank”.
Wednesday September 17
7am BST: Nikkei rallies to 11,749, up 140 points.
2am BST: US government agrees to give AIG $85bn to keep afloat, in return for control of the company.
10am BST: Russia suspends stock market trading.
11am BST: More volatile trading on the FTSE, but silence from Lloyds and HBOS.
Noon BST: Libor – the borrowing rate banks charge each other – hits a seven-year high as the panic escalates.
1pm BST: Barclays hints that it might buy Lehman’s UK assets too.
1.30pm BST: Lloyds finally confirms it is negotiations with HBOS.
3pm BST: Bank of England extends its special liquidity scheme, after pressure from banks.
4pm BST: Morgan Stanley shares fall 30%, as it become the latest bank under fire.
4.30pm BST: FTSE closes below 5,000 for first time since May 2005, down 113.2 points at 4912.4.
6.30pm BST: Merrill Lynch’s John Thain defends $200m bonus pool for top brass.
7pm BST: Reports emerge that regulators are probing the practice of “naked” short sellers.
9pm BST: In fresh gloom on Wall Street, the Dow sheds 449 points to close at 10,609.
9.30pm BST: HBOS takeover is finalised.
Midnight BST: Morgan Stanley looks for salvation through a merger with Wachovia.
Tuesday September 16
1am BST: Asian markets, which were closed yesterday, plummet in early trading.
7am BST: Japan’s Nikkei index closes 570 points down at 11,609.
7.30am BST: Barclays confirms that it is still talking to Lehman about buying some assets.
8.30am BST: The FTSE plunged almost 100 points in early trading.
10am BST: HBOS shares halve in value to a low of 88p. Spokesman insists it is strong and well capitalised.
1pm BST: Wall Street titan Goldman Sachs reports 70% drop in profits.
1.50pm BST: FTSE 100 falls through the 5,000-point mark.
3pm BST: Pressure piles on HBOS, whose shares are still down 30%, with a downgrade from Standard & Poor’s.
4.30pm BST: FTSE 100 slumps 178.6 points to close at 5025.6, wiping another £42bn off leading shares.
9pm BST: Dow finishes up 141.5 points at 11,059 after zig-zagging around all day.
10pm BST: Barclays seals deal for Lehman’s US assets.
Monday September 15
4am BST: Bank of America agrees a $50bn rescue bid for Merrill Lynch.
5.30am BST: Lehman files for bankruptcy.
7am BST: 4,500 Lehman staff at its Canary Wharf HQ are told it’s all over.
9am BST: Shares in HBOS, Britain’s biggest mortgage lender, crash 34% in early trading.
12pm BST: Shares plunge in a panicked morning on the London Stock Exchange, where the FTSE sheds almost 400 points.
2pm BST: Cardboxes are in demand at Canary Wharf as Lehman workers pack up and leave.
4.30pm BST: FTSE 100 closes almost 4% lower at 5,202.4, a 210 point drop, wiping out £50bn of value.
8pm BST: US authorities trying to put a rescue package together for insurance giant AIG agree a $20bn lifeline.
9pm BST: On Wall Street the Dow Jones industrial average plunges 504 points to close at 10917.51
Sunday September 14
2pm BST: Talks run into a third day. Traffic in New York snarls up under the sheer weight of backed-up, blacked-out limousines transporting the stressed-out bankers.
8pm BST: Barclays pulls out of the bidding and Bank of America turns its attention to Merrill Lynch.
Saturday September 13
2pm BST: Teams of bankers flood the New York Federal Reserve building for the weekend to explore options for Lehman. Bank of America and Barclays head list of potential purchasers.
Friday September 12
6pm BST: With Lehman Brothers facing collapse, US officials struggle to find a buyer for the distressed investment bank.