Which 2008 investment bank declared bankruptcy, intensifying the global financial crisis?

Lehman Brothers declared bankruptcy on September 15, 2008, intensifying the global financial crisis.

With about $639 billion in assets, Lehman’s filing became the largest bankruptcy in United States history at that time. The firm had built up substantial exposure to mortgage-related securities and real estate. As housing prices fell and mortgage defaults increased, investors lost confidence in Lehman’s balance sheet and its ability to raise funding.

The bankruptcy froze parts of the global credit system. Money-market funds, banks, insurers, and companies became more cautious about lending to one another. Governments and central banks then used emergency measures, including bank rescues, guarantees, interest-rate cuts, and extraordinary lending programs.

Lehman’s failure was an important event in the 2008 crisis, but it was not the only cause. The wider collapse involved risky mortgages, securitized debt, excessive leverage, weak underwriting, and interconnected financial institutions. Bear Stearns had already been rescued in March 2008.