What is the usual name for the worldwide market crash that followed the September 2008 failure of Lehman Brothers?

The worldwide market crash associated with Lehman Brothers’ failure was part of the global financial crisis.

Lehman Brothers filed for bankruptcy on 15 September 2008 after suffering major losses connected to the U.S. housing and mortgage markets. Its failure intensified fear about the solvency of banks and financial institutions around the world. Credit markets froze or became extremely difficult to access, while equity markets plunged.

The crisis had developed before Lehman’s collapse. U.S. subprime mortgage defaults, complex mortgage-backed securities, high leverage, and weaknesses in risk management had already put pressure on the financial system. Governments and central banks later used rescues, guarantees, emergency lending, and stimulus measures to limit further damage.

The episode is also called the 2008 financial crisis, but the broader crisis began in 2007 and its economic effects lasted for years. It is distinct from the Great Depression, which followed the 1929 U.S. stock-market crash and involved a different historical financial system.