Vietnam national university of economics and business


Period 2007: secondary credit institutions went bankrupt



tải về 195.42 Kb.
trang4/16
Chuyển đổi dữ liệu12.05.2022
Kích195.42 Kb.
#51852
1   2   3   4   5   6   7   8   9   ...   16
Quản-trị-ngân-hàng-tmai
Khung-CTDT-TCNH-CLC, Ruot thang 4 (2)-99-102

2.1.2. Period 2007: secondary credit institutions went bankrupt.


As soon as the housing bubble burst at the end of 2005. The US economy started to slow down. However, the housing bubble led to housing investors' defaulting on loans to financial institutions in the country. By 2007, the first US financial institutions involved in housing credit in the US went bankrupt.
On February 5, 2007, Mortgage Lenders Network USA declared bankruptcy (total outstanding loans up to $3.3 billion, third quarter, 2006).
On April 2, 2007, the largest subprime lender in the United States, New Century Financial declared bankruptcy.
On August 6, 2007, the US housing investment company (American Housing Mortgage Investment Corporation, Melville, New York) filed for bankruptcy after laying off a series of workers in the previous week.
Goldman Sachs's largest $8 billion insurance fund, Global Alpha, reported a 26% loss in 2007. At the same time, Citigroup also reported a loss of $700 million in credit operations in July and August 2007.
On August 14, 2007, another fund, Sentinel Management Group, suspended the settlement of investors' debt and sold off $321 million in assets. Three days later, Sentinel filed for bankruptcy. Later that day, Thornburg Mortgage, a giant mortgage lender, announced that it was postponing its dividend after facing increased risk provisions and disruptions in its mortgage investment activity on the internet. asset-backed securities market and commercial paper. Trading in Thomburg shares fell more than 46% on the New York Stock Exchange.
On August 15, 2007, shares of Countrywide Financial, the largest mortgage lender in the United States, fell about 13% on the New York Stock Exchange, the biggest single-day drop since the stock market crash of 2016. 1987, due to concerns that the company might face bankruptcy. On August 16, the group was forced to borrow USD 11 billion from a group of other banks to avoid the risk of bankruptcy.
The first significant victims were directly related to subprime lending such as Northern Rock and Countrywide Financial in August and September 2007. Northern Rock, the fifth largest bank in the UK, in September 2007, after severe liquidity loss due to losses from mortgage lending, had to call for help from the Bank of England. Investors flocked to withdraw money, forcing the Government to take over this banking group. Previously, Countrywide Financial, a financial group specializing in US real estate mortgage lending by capitalization and deposits, Bank of America, acquired Countrywide Financial for $4 billion. Then, on February 17, 2008, Northern Rock was officially nationalized. The events of Northern Rock and Countrywide Financial were a harbinger of a storm coming to the global financial markets as well as a wave of mergers, bankruptcies, and government takeovers of financial institutions.

tải về 195.42 Kb.

Chia sẻ với bạn bè của bạn:
1   2   3   4   5   6   7   8   9   ...   16




Cơ sở dữ liệu được bảo vệ bởi bản quyền ©hocday.com 2024
được sử dụng cho việc quản lý

    Quê hương