What was the largest bankruptcy in U.S. history when Lehman Brothers collapsed in 2008?

Lehman Brothers was the largest bankruptcy in U.S. history when it collapsed in 2008.

The 158-year-old investment bank filed for Chapter 11 protection on September 15, 2008, after losses linked to mortgages and other real-estate assets undermined confidence in the firm. Its filing listed more than $600 billion in assets, making it larger than earlier famous corporate failures such as Enron and WorldCom.

The collapse damaged markets because Lehman was deeply connected to banks, funds, and derivatives counterparties around the world. Its failure showed how quickly problems at a major financial institution could spread through short-term lending and complex contracts.

Washington Mutual later became the largest U.S. bank failure, but it was not the largest corporate bankruptcy by assets. That distinction is one reason Lehman remains a defining name in accounts of the 2008 crash.