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* * 4. Merrill Lynch the biggest global and comprehensive investment bank founded in 1885, acquired by Bank of America on September 14, 2008 The Effects of Financial Crisis At 1:45 a.m., Sept. 15, 2008, Lehman Brothers announced bankruptcy. the Dow had fallen 4.4% on Sept. 29, the Dow dropped 778 points share prices convulsed（强烈震动） By New Year’s Eve, the market had lost nearly a quarter of its value. Firms: borrow money Healthier banks: shut easy-money spigot and froze credit the U.S. unemployment rate spiked from 6% to 10% 401(k)s were quickly and cruelly eviscerated.  Government Solutions -----吕明柏 At early stage: September 7th, 2008 ---Bailout for Fannie Mae and Freddie Mac Explaination: Fannie Mae: Federal National Mortgage Association Established in 1938 The largest government-sponsored enterprise in America. Expand the capital flow in the secondary housing market Freddie Mac: Federal National Housing Mortgage Corporation The second largest government-sponsored enterprise. Established by National Congress in 1970 Exploit the secondary mortgage market September 16th,2008 ---Lent loan to AIG Explaination: AIG:American International Group,Inc Multinational insurance corporation Business: Insurance, Finance, Asset Management October 3th 2008, U.S. President ---Signed Troubled Asset Relief Program(TRAP) Explaination TRAP: Purchase assets and equity from institutions to strengthen financial sector. October 11th 2012, total disbursements(支付 款) reached $431 billion. December 31th 2012, received $405 billion in total. On later period February 17th, 2009 --A economic stimulus plan of $787 billion, the largest government spending plan since World War II. 2. March,2009 --Public-private