Which 2008 financial institution's bankruptcy triggered the global financial crisis?

Which 2008 financial institution’s bankruptcy triggered the global financial crisis? Lehman Brothers.

Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008, after suffering enormous losses tied to subprime mortgages and mortgage-backed securities. Its collapse became the most prominent turning point of the financial crisis and remains the largest bankruptcy filing in U.S. history by assets.

The failure shocked markets because Lehman was deeply connected to banks, investors, and short-term credit markets around the world. The Dow Jones Industrial Average fell 504.48 points that day, while money-market funds and interbank lending came under intense pressure. The U.S. government chose not to provide the kind of rescue support used for Bear Stearns.

The crisis had begun before Lehman’s failure, with roots in the U.S. housing and credit-market collapse, so the bankruptcy did not single-handedly cause every part of it. However, it dramatically accelerated the panic. Merrill Lynch was sold to Bank of America, and AIG required a federal rescue the following day—two events often confused with Lehman’s bankruptcy.