Lehman Brothers' 2008 bankruptcy became the largest in U.S. history and intensified the global stock-market crash.
The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008, after losses linked to the collapse of the U.S. housing market and mortgage-backed securities. Lehman reported more than $600 billion in assets, making its failure exceptionally large and deeply interconnected with banks, insurers, funds, and trading partners around the world.
The bankruptcy intensified fears that other financial institutions could fail, contributing to dramatic falls in stock markets and a freezing of credit. The U.S. government had helped facilitate the sale of Bear Stearns earlier in 2008, but Lehman was not rescued in the same way. Merrill Lynch was instead sold to Bank of America, while Washington Mutual failed later that month. These events were part of the broader global financial crisis, not isolated stock-exchange incidents.