Timeline of Events(Continental Illinois's rise and fall)

Timeline

1976 - 1981: Continental grows fast, lending to the energy sector and lesser-developed countries

1981: Continental hits a high point in terms of asset size and by now employs some 12,000 people

1981: The US energy sector, hit by oil price falls, moves towards recession

July 1982: Energy-sector specialist Penn Square Bank fails, causing concern about Continental, a major participant in Penn Squares risky lending programme

August 1982: Mexico defaults on debt, sparking LDC debt crisis

Spring 1984: With non-performing loans rising sharply, Continentals critics are now wondering about its solvency

9 May: Final liquidity crisis begins in Eurodollar markets as rumours swirl about Continentals creditworthiness

11 May: Continental forced to borrow $3.6 billion through Fed discount window

14 May: 16 banks put together rescue package of funding, but the run on Continental continues

17 May: Unprecedented interim assistance package announced by panicked regulators. Uninsured depositors and creditors given FDIC assurances.

July: With it proving difficult to find a purchaser for the bank, regulators work with Continental to devise a permanent solution

26 September: Permanent solution put in place, effectively nationalising Continental using FDIC funds

1991: FDIC sells off its last equity stake in Continental, bringing the rescue programme to a close some seven years after the banks near collapse\

Taken from http://www.erisk.com/Learning/CaseStudies/ContinentalIllinois.asp