What 2008 crisis followed the collapse of Lehman Brothers and severe problems in mortgage finance?

The 2008 crisis that followed the collapse of Lehman Brothers and severe problems in mortgage finance was the global financial crisis.

US housing-market weakness exposed risky subprime mortgages and complex securities linked to them. As house prices fell and borrowers defaulted, financial institutions faced large losses and growing doubts about their solvency.

Lehman Brothers filed for bankruptcy on September 15, 2008, intensifying the panic. Credit markets seized up, stock indexes fell worldwide, and governments supported banks, insurers, and other institutions to prevent a broader collapse.

The crisis produced the Great Recession, the most severe global downturn since the Great Depression in many countries. It also led to major regulatory changes, including stronger capital and liquidity requirements under the Basel III framework.