<P> A timeline of some of the significant events in the crisis from 2007 - 2008 includes: </P> <Ul> <Li> From late 2007 through September 2008, before the official October 3 bailout, there was a series of smaller bank rescues that occurred which totalled almost $800 billion . </Li> <Li> In the summer of 2007, Countrywide Financial drew down a $11 billion line of credit and then secured an additional $12 billion bailout in September . This may be considered the start of the crisis . </Li> <Li> In mid-December 2007, Washington Mutual bank cut more than 3,000 jobs and closed its sub-prime mortgage business . </Li> <Li> In mid-March 2008, Bear Stearns was bailed out by a gift of $29 billion non-recourse treasury bill debt assets . </Li> <Li> In early July 2008, depositors at the Los Angeles offices of IndyMac Bank frantically lined up in the street to withdraw their money . On July 11, IndyMac, a spinoff of Countrywide, was seized by federal regulators--and called for a $32 billion bailout--as the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures . That day the financial markets plunged as investors tried to gauge whether the government would attempt to save mortgage lenders Fannie Mae and Freddie Mac . The two were placed into conservatorship on September 7, 2008 . </Li> <Li> During the weekend of September 13--14, 2008, Lehman Brothers declared bankruptcy after failing to find a buyer; Bank of America agreed to purchase investment bank Merrill Lynch; the insurance giant AIG sought a bridge loan from the Federal Reserve; and a consortium of 10 banks created an emergency fund of at least $70 billion to deal with the effects of Lehman's closure, similar to the consortium put forth by financial titan J.P. Morgan during the stock market panic of 1907 and the crash of 1929 . Stocks on Wall Street tumbled on Monday, September 15 . </Li> <Li> On September 16, 2008, news emerged that the Federal Reserve might give AIG an $85 billion rescue package; on September 17, 2008, this was confirmed . The terms of the package were that the Federal Reserve would receive an 80% public stake in the firm . The biggest bank failure in history occurred on September 25 when JP Morgan Chase agreed to purchase the banking assets of Washington Mutual . </Li> </Ul> <Li> From late 2007 through September 2008, before the official October 3 bailout, there was a series of smaller bank rescues that occurred which totalled almost $800 billion . </Li> <Li> In the summer of 2007, Countrywide Financial drew down a $11 billion line of credit and then secured an additional $12 billion bailout in September . This may be considered the start of the crisis . </Li>

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