Financial crisis timeline

September 7: US takes over Fannie Mae and Freddie Mac: The Bush administration seized control of two mortgage finance companies, a move that was meant to shrink their influence on Wall Street. The move was also meant to pull the nation out of its housing crisis. The bailout of the two companies placed them in government conservatorship, similar to a bankruptcy reorganization.

September 14: Merrill Lynch sold to Bank of America's (BoA) for $50.3 billion in stock amidst fears of a liquidity crisis. The company has lost more than $45 billion on its mortgage investments. The merger will make BoA the world's largest financial institution, combining BoA's banking and lending strength with Merrill's wealth management expertise.

September 15: Lehman Brothers files for bankruptcy protection, making the company the largest victim so far of the credit crunch and sub-prime crisis. The collapse of Lehman puts tens of thousands out of work and sends shockwaves around the world in the banking sector.

September 16: Standard & Poor, Moody's Investors Services and Fitch Ratings downgrades the world's largest insurer American International Group Inc., (AIG) ratings amidst worries that the housing market further undermines the company's battered finances.

September 17: The US Federal Reserve loans $85 billion to AIG to avoid bankruptcy in return for a 79.9 percent stake.

September 19: US Treasury Secretary Henry Paulson proposes a financial rescue plan meant to rescue the banking sector. The bill called for a $700 billion bailout of the government buying up billions of dollars in bad mortgage debt. The move was to kick-start the financial markets.

September 25: JPMorgan Chase & Co. Inc. acquired the banking operations of Washington Mutual Bank (WaMu) for $1.9 billion.

September 29: U.S. House of Representatives rejected the financial bailout plan, as proposed, triggering the Dow Jones to drop 777 points, the largest in one day. Many of the world markets followed suit. The bill was defeated 228-205, however, US is working on a new plan.