Which bank failure in 2008 became the largest bankruptcy in U.S. history at that time?

Lehman Brothers became the largest bankruptcy in U.S. history at that time when it filed for Chapter 11 protection in 2008.

The investment bank filed on September 15, 2008, after suffering heavy losses connected to the U.S. housing and mortgage markets. Its collapse intensified the global financial crisis because Lehman had extensive relationships with banks, investors, and financial institutions worldwide.

The filing involved more than $600 billion in assets, making it exceptionally large. Unlike some other major firms, Lehman did not receive a government rescue before filing for bankruptcy. Its failure contributed to severe stress in credit markets and was followed by further emergency interventions.

Lehman Brothers was founded in Montgomery, Alabama, in 1850 by three Lehman brothers. It later moved its headquarters to New York and became a major global investment bank before its collapse.