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Finance on Monday: Key Industry-Shaping Decisions

Finance on Monday: Key Industry-Shaping Decisions

Mondays are typically associated with the start of a new working week, often receiving a bad rap as the least favourite day for many.

However, in the world of finance and banking, some pivotal decisions have been made on this day, showcasing its potential to be a day of major transformations and strategic shifts. And we've got a list of a few significant financial decisions that took place on a Monday, setting new courses for industries and economies.

1. J.P. Morgan's 1907 Bank Rescue

On Monday, 21 October 1907, amidst a severe financial panic, legendary banker J.P. Morgan made a pivotal decision that would underscore his influence on American banking. As the panic spread, Morgan locked several major bank and trust company presidents in his library overnight, forcing them to find a solution to the liquidity crisis. His decision to orchestrate this meeting and subsequent actions helped stabilise the banking system and laid the groundwork for future federal financial interventions.

2. Citigroup's Government Rescue in 2008

On Monday, 24 November 2008, in the midst of the global financial crisis, the U.S. government announced a massive bailout plan for Citigroup. The rescue package aimed to shore up the bank with a $20 billion capital injection and a guarantee for troubled assets. This decision was crucial in restoring confidence in the global banking sector and is considered one of the most significant interventions in corporate finance.

3. Lehman Brothers' Bankruptcy Filing

Monday, 15 September 2008, marked one of the most significant financial collapses in history when Lehman Brothers filed for bankruptcy. The decision to let Lehman fail had profound effects on the global financial markets, signalling the depth of the financial crisis and leading to sweeping reforms in banking and investment practices.

4. The UK Banking Bailout of 2008

On Monday, 13 October, 2008, the UK government announced a significant financial rescue plan for the banking sector, which was critical in stabilising the British economy during the global financial crisis. The UK government provided a substantial capital infusion to major banks, including Royal Bank of Scotland (RBS) and Lloyds TSB, which amounted to a total of approximately £37 billion. This decision followed the collapse of Lehman Brothers in September, which had triggered financial turmoil worldwide.

5. Black Monday 1987

On Monday, 19 October 1987, stock markets around the world crashed, shedding a huge percentage of their value in just hours. The crash began with the Hong Kong market and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The rapid drop led to increased regulatory scrutiny and the implementation of "circuit breakers" in stock exchanges to prevent such precipitous drops in the future.

6. Microsoft's Acquisition of LinkedIn

On Monday, 13 June 2016, Microsoft announced its decision to buy LinkedIn for $26.2 billion, one of the largest technology sector acquisitions at the time. This decision on a Monday marked a transformative shift for Microsoft towards cloud computing and social networking.

Each made on a Monday, these decisions demonstrate how significant strategic moves in the banking and financial sectors can reshape entire industries and economic landscapes. They remind us that even on a Monday, or perhaps especially so, the potential for pivotal change and historic developments is ever-present.


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