Its specific evolution process is as follows:
On March 13, 2007, New Century Financial Company, the second largest subprime lending institution in the United States, declared that it was on the verge of bankruptcy.
On April 2nd, New Century Finance filed for bankruptcy protection, which became the largest bankruptcy case of mortgage institutions in the downturn of American real estate industry.
In June, two funds owned by Bear Stearns, the fifth largest investment bank in the United States, suffered losses due to their involvement in the subprime mortgage bond market.
10 In July, Standard & Poor's and Moody's downgraded the credit ratings of 6 12 and 399 mortgage bonds respectively. The credit crisis forced a large number of enterprises and funds to suspend issuing bonds.
On August 7th, the American Mortgage Investment Corporation, the tenth largest loan company in the United States, filed for bankruptcy protection. From last June 1 1 to now, about 80 subprime mortgage companies in the United States have declared bankruptcy, of which 1 1 has already declared bankruptcy.
On August 9, BNP Paribas announced that it would suspend the trading of its three funds involved in the US mortgage business.
August 9-13 In order to prevent the crisis in the US subprime mortgage market from causing serious financial market turmoil, the Federal Reserve, the European Central Bank, the Bank of Japan and the Australian Central Bank injected funds into the market.
(china securities journal Huang)