1. The main reason for the 2008 financial crisis is that U.S. banks and financial institutions have long issued large amounts of loans to individuals and institutions with subprime credit ratings (poor repayment ability and unstable income). In addition, the U.S. economy is gradually declining.

The income level of these individuals and institutions has gradually declined, resulting in a gradual decline in repayment ability. Over time, a large number of inability to repay on time has occurred, resulting in banks not being able to receive the money they should receive and experiencing capital turnover difficulties. Therefore, the changes caused by the subprime mortgage crisis

into a financial crisis.

Therefore, a large number of banks and financial investment institutions collapsed, and the chain reaction affected the economic decline of relevant countries around the world and the run on financial institutions, which spread into the global financial crisis.

2. The course of the financial crisis: On April 4, 2007, New Century Financial Company applied for bankruptcy protection.

On August 6, 2007, American Residential Mortgage Investments, the tenth largest mortgage service provider in the United States, filed for bankruptcy protection.

On September 7, 2008, the U.S. Treasury Department had to announce the takeover of Fannie Mae and Freddie Mac.

On July 16, 2007, Bear Stearns, the fifth largest investment bank on Wall Street, closed its two hedge funds, revealing its first loss in the company's 83-year history.

In March 2008, the U.S. Federal Reserve prompted JPMorgan Chase Bank to acquire Bear Stearns.

On September 15, 2008, Lehman Brothers Holdings, the fourth largest investment bank in the United States, filed for bankruptcy protection.

Later on September 15, 2008, Bank of America issued a statement that it was willing to acquire Merrill Lynch, the third largest investment bank in the United States.

On September 16, 2008, American International Group (AIG) provided US$85 billion in short-term emergency loans.

This means that the US government has taken over AIG.

On September 21, 2008, after Wall Street investment banks collapsed one after another, the Federal Reserve announced that it would convert the last two remaining investment banks, Goldman Sachs Group and Morgan Stanley, into commercial banks.

.

In this way, we can tide over the difficulties by absorbing deposits.

At this point, history came to an astonishing end for the once-famous investment banks on Wall Street on September 21, 2008. "Wall Street investment banks" disappeared as a historical term.

On October 3, 2008, the Bush administration signed a financial rescue package totaling US$700 billion.

The outbreak of the financial crisis in the United States has greatly impacted the real economy of the United States, including the three major automobile companies, General Motors, Ford Motor, and Chrysler, and the real industry is in danger.

The U.S. financial tsunami also involves the whole world and affects the whole world.

On January 20, 2009, the new President of the United States, Obama, was sworn in.

Warm reminder: The above information is for reference only.

Response time: 2021-02-04. For the latest business changes, please refer to the official website of Ping An Bank.