Liquidity crisis of September 2008

The liquidity crisis of September 2008 became visibly in a prominent crisis in the United States and around the world on September 15, 2008 decision by Lehman Brothers Holdings Inc. to file for bankruptcy, the acquisition of Merrill Lynch by Bank of America, and concerns over American International Group (AIG) ending when the company was rescued by the Federal Reserve System on September 16. Together, these developments were seen to reflect the deteriorating financial markets apparently due to the subprime mortgage crisis. The accident led to large infusions of cash by central banks around the world. On the first day, the Dow Jones Industrial Average plunged 504 points (4.4 ), while the S and P 500 fell 59 points (4.7 ). Asia and European markets rendered similarly sharp drops. United Kingdom regulators announced a temporary ban on short selling financial stocks on September 18 and were followed by the United States on September 19 .
On September 29, the Dow Jones Industrial Average under 777 points (6.98 ), the largest point drop in history.