It got into trouble by selling guarantees on mortgage securities that forced it to pay billions of dollars after the subprime mortgage bubble burst in 2007. (baltimoresun.com)
That was the beginning of the great recession that resulted from the subprime mortgage bubble burst. (thefinancialjourneyman.com)
As interest rates rose, the massive real estate / mortgage bubble popped, and the stock market again crashed. (traderplanet.com)