Which bank failed in September 2008, intensifying the global financial crisis?

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

The investment bank had large exposures to the US housing market and mortgage-related securities. As house prices fell and mortgage defaults increased, investors became increasingly doubtful about the value of such assets and Lehman’s ability to remain solvent. The company could not secure a rescue or buyer acceptable to authorities.

Lehman’s bankruptcy was the largest in US history at the time. It disrupted lending and confidence because banks and financial institutions were unsure which counterparties might be exposed to failing assets. Stock markets around the world fell sharply in the weeks that followed.

Bear Stearns had already been rescued in March 2008, while Merrill Lynch was acquired by Bank of America during the same crisis period. Lehman’s failure therefore became a defining marker of the crisis, rather than its original beginning.