Which 2008 crisis followed the collapse of Lehman Brothers and turmoil in global markets?

The 2008 crisis associated with Lehman Brothers’ collapse and turmoil in global markets was the global financial crisis.

The crisis grew from problems in the U.S. housing and mortgage markets, especially loans linked to falling-quality underwriting and complex securities. When house prices declined and borrowers defaulted, financial institutions faced large losses. Credit markets tightened, making it difficult for banks and businesses to obtain funding.

Lehman Brothers filed for bankruptcy on September 15, 2008. Its failure intensified the panic, although the crisis had already been developing for more than a year. Stock markets around the world fell, governments provided emergency support, and central banks cut interest rates or introduced extraordinary measures.

The global financial crisis is sometimes shortened to “the 2008 crisis,” but its effects extended beyond one calendar year. It produced a severe worldwide recession and led to major reforms of banking regulation and financial oversight.