In August 2007 (!) Bear Stearns found itself at the center of a mortgage lending crisis. At that time, it was the fifth largest investment bank in the United States. As a result, two hedge funds under his management lost almost all of their clients’ money ($1.6 billion) on investments in mortgage bonds, which caused a panic in the stock market.
However, in October 2007 (!) the S&P500 index set a new all-time high. And from that moment began its fall.
And the most dramatic moment of the crisis was in September 2008 (!):
An important event in the aggravation of the crisis was the bankruptcy of Lehman Brothers on September 15, 2008 (!). Quotations on the stock markets declined sharply during 2008 and early 2009.
Conclusion. From the current events with banks to serious shocks are still far away.
