Then Treasury Secretary Henry Paulson looks over at his colleagues including then Fed Chair Ben Bernanke and then NY Fed President Tim Geithner.
Seven years ago, the US economy went into recession, the US housing market crashed, and credit markets seized bringing the banking industry to its knees. It was a global financial crisis.
Businesses went down and workers lost jobs. Americans were losing hoping, which only made things work.
For many, the low critical moment was when Lehman Brothers went bankrupt on September 15, 2008. But the memory of critical events before and after that fateful day is slowly fading. Hearings, lawsuits, bailouts - it all gets muddled together.
Business Insider has outlined the major moments from 2007 to 2009. From the initial reports of subprime defaults to the collapse of Lehman Brothers to AIG's second bailout, here are the 27 scariest moments of the financial crisis.
Note: Former Business Insider reporter Steven Perlberg contributed to this feature.
FEB. 8, 2007: HSBC says its bad debt provisions exploded because of a slump in the U.S. housing market. Normal people begin to learn what subprime is.
APRIL 2, 2007: New Century files for bankruptcy. It was the largest subprime lender in the United States.
JUNE 21, 2007: Merrill Lynch sells off assets in two Bear Stearns hedge funds as the funds hemorrhage billions of dollars on bad subprime bets.
AUG. 9, 2007: France's largest bank, BNP Paribas, freezes withdrawals from three investment funds after U.S. subprime mortgage losses crush markets. "The complete evaporation of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating," BNP said in the release.
SEPT. 4, 2007: Libor — the interbank interest rate — hits 6.7975%, its highest level since December 1998.
OCT. 24, 2007: Merrill Lynch announces an $8.4 billion quarterly loss, the largest in its history, thanks to write-downs on subprime mortgages.
OCT. 31, 2007: Meredith Whitney says Citigroup will have to cut its dividend. Later, it does.
OCT to NOV 2007: Many CEOs would not make it through the financial crisis. Stan O'Neal at Merrill and Chuck Prince at Citigroup both exit, taking monster severance packages with them. O'Neal, for one, walked out with $161.5 million.
DEC. 11, 2007: The FOMC reduces the federal funds rate to 4.25% and cuts the primary credit rate to 4.75%.
MARCH 16, 2008: JPMorgan Chase buys Bear Stearns for $2 a share in a fire sale (later it would be $10 a share). The Federal Reserve finances the deal, providing $30 billion so Bear doesn't go bankrupt.
2008: Insurers like MBIA, who have written against the failure of CDOs, get downgraded and collapse. Hedge funder Bill Ackman would reportedly make his investors over $1 billion on a short position.
SEPT. 7, 2008: The saga of Fannie Mae and Freddie Mac, guarantor of half of U.S. mortgages, culminates with a takeover by the U.S. government.
SEPT. 14, 2008: Bank of America buys Merrill Lynch for $50 billion.
SEPT. 15, 2008: Meanwhile, Lehman Brothers can't find a buyer and files for bankruptcy.
SEPT. 16, 2008: For only the second time in history, a money market fund "breaks the buck" and reports share value below $1. Americans run on money market funds, long considered safe havens, en masse. $140 billion has been withdrawn year-to-date.
SEPT. 17, 2008: The Fed rescues insurance giant AIG from bankruptcy for $85 billion.
FALL 2008: Longstanding banking giants like Wachovia and Washington Mutual begin to disappear as they are bought by other banks for pennies on the dollar.
SEPT. 29, 2008: The U.S. House of Representatives defeats a proposed $700 billion emergency bailout package, 228-205. Stocks plunge 788 points as the votes are counted live.
OCT. 3, 2008: TARP is passed. Congress approves a $700 billion bank bailout, but stocks continue to fall following investor worries that the bailout won't be enough.
OCT. 8, 2008: The New York Fed bails out AIG for the second time, for $37.8 billion.
OCT. 13, 2008: Treasury Secretary Hank Paulson sits down with nine major bank CEOs. When they leave the room hours later, the federal government has taken a huge equity position in Wall Street. The total bailout package looks more like $2.25 trillion, well more than the original $700 billion available.
OCT. 15, 2008: The stock market has another hellish day, plunging 733 points (7.9%).
OCT. 16, 2008: Warren Buffett authors a New York Times op-ed called "Buy American. I Am." He gets absolutely crushed by critics when markets crash further. Rising stock prices in the post-crisis years would later vindicate him.
OCT 2008: Commentators wonder if this is the end of life as we know it. "The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism," wrote The Washington Post's Anthony Faiola. Simon Jenkins at The Guardian called this line of thinking "journalistic wish-fulfillment and glee."
DEC. 11, 2008: The NBER announces that the economy is officially in a recession.
FEB. 17, 2009: Obama signs the American Recovery and Reinvestment Act of 2009.
NOV 2008 — SPRING 2009: The Financial Crisis continues, crippling employment. Eventually the Dow Jones plunged to 6,547.05 on March 9, 2009. It was at its lowest since April 1997.
Banks would continue to report losses, fight regulation efforts, and eventually stomach higher capital requirements.
Eventually, after extraordinary bailouts from the Fed and Congress, the market bottomed and the economy slowly recovered.