Lehman Brothers’ 2008 bankruptcy became the largest bankruptcy filing in U.S. history during the global financial crisis.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. Its filing listed more than $600 billion in assets, making it enormous even by the standards of major financial institutions. The collapse followed heavy exposure to mortgage-related assets and a loss of investor confidence.
The bankruptcy intensified panic in global financial markets. Banks became less willing to lend to one another, credit markets seized up, and stock indexes fell sharply. Lehman’s failure is widely viewed as a crucial turning point in the crisis, although the underlying problems had developed over several years.
Other institutions were also rescued, sold, or placed into government control. Bear Stearns was acquired by JPMorgan Chase in March 2008, while Washington Mutual failed later that month. Lehman’s collapse became a lasting example of how interconnected financial firms can transmit distress across borders.