Financial crisis from 16 Dec till today

NEXT VICTIM: CAR INDUSTRY

16 December

The US Federal Reserve slashes its key interest rate from 1% to a range of zero to 0.25% - the lowest since records began.

19 December

President George W Bush says the US government will use up to $17.4bn of the $700bn meant for the banking sector to help the Big Three US carmakers, General Motors, Ford and Chrysler.

29 December

The US Treasury unveils a $6bn bail-out for GMAC, the car-loan arm of General Motors.

31 December

The FTSE 100 closes down 31.3% since the beginning of 2008 - the biggest annual fall in the 24 years since the index was started.

The Dax in Frankfurt lost 40.4% over the year while the Cac 40 in Paris dropped 42.7%.

GLOOM DEEPENS

5 January

US President-elect Barack Obama describes America's economy as "very sick" and says that the situation is worsening.

8 January

The Bank of England cuts interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery in the UK.

9 January

Official figures show the US jobless rate rose to 7.2% in December, the highest in 16 years. The figures also indicate that more US workers lost jobs in 2008 than in any year since World War II.

13 January

China's exports register their biggest decline in a decade.

German Chancellor Angela Merkel unveils an economic stimulus package worth about 50bn euros ($67bn; £45bn) to kick-start Europe's largest economy.

14 January

The UK government unveils a plan to guarantee up to £20bn of loans to small and medium-sized firms, to help them survive the downturn.

US Commerce Department figures show retail sales fell by more than expected in December, as shoppers cut back on spending over the Christmas period. The news prompts big falls in share prices in the US and Europe.

15 January

The European Central Bank (ECB) cuts eurozone interest rates by half a percentage point to 2%. The ECB has now reduced rates four times from 4.25% in September as it continues efforts to bolster the eurozone economy.

The Irish government says it is to nationalise the Anglo Irish Bank after deciding pumping money into the lender was not enough to secure its future.

16 January

The US government reaches an agreement to provide Bank of America with another $20bn in fresh aid from its $700bn financial rescue fund. The emergency funding will help the troubled bank absorb the losses it incurred when it bought Merrill Lynch.

Struggling US banking giant Citigroup announces plans to split the firm in two, as it reports a quarterly loss of $8.29bn (£5.6bn).

23 January

The UK has officially entered a recession as fourth quarter GDP falls by 1.5% compared to the previous three months.

24 January

President Obama pledges that his economic recovery package will be at the centrepiece of his administration. Mr Obama says that 80% of the spending will take place within 18 months.

28 January

World economic growth is set to fall to just 0.5% this year, its lowest rate since World War II, warns the International Monetary Fund (IMF). It now projects the UK will see its economy shrink by 2.8% next year, the worst contraction among advanced nations.

The International Labour Organization said that as many as 51 million jobs worldwide could be lost this year because of the global economic crisis.

5 February

The Bank of England cuts interest rates to a record low of 1% from 1.5% - the fifth interest rate cut since October.

10 February

The former bosses of the two biggest UK casualties of the banking crisis - RBS and HBOS - apologise "profoundly and unreservedly" for their banks' failure.

SPENDING OUR WAY OUT OF RECESSION

17 February

US President Barack Obama signs his $787bn (£548bn) economic stimulus plan into law, calling it "the most sweeping recovery package in our history".

The plan is aimed at saving or creating 3.5 million jobs and boosting consumer spending and rebuilding infrastructure.

2 March

Insurance giant AIG reports the largest quarterly loss in US corporate history of $61.7bn (£43bn) in the final three months of 2008. The firm is also to receive an extra $30bn from the US government as part of a revamped rescue package.

Meanwhile, HSBC confirms it is seeking to raise £12.5bn ($17.7bn) from shareholders through a UK rights issue .The news came as HSBC revealed pre-tax profits for 2008 of $9.3bn (£6.5bn), down 62% on the previous year.

14 March

Finance ministers from the G20 group of rich and emerging nations have pledged to make a "sustained effort" to pull the world economy out of recession . The main summit takes place in London in April.

18 March

The US Federal Reserve says it will buy almost $1.2 trillion (£843bn) worth of debt to help boost lending and promote economic recovery.

2 April

Leaders of the world's largest economies reach an agreement at the G20 summit in London to tackle the global financial crisis with measures worth $1.1 trillion (£681bn).