Which bank’s bankruptcy became the emblematic event of the 2008 global financial crisis?

Lehman Brothers’ bankruptcy became the emblematic event of the 2008 global financial crisis.

The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008. It was the largest bankruptcy filing in U.S. history at that time, with liabilities exceeding $600 billion. Lehman had been deeply exposed to mortgage-related securities and commercial real estate.

Its failure intensified an already severe credit crisis. Banks became less willing to lend because they could not easily judge the health of counterparties. Stock markets fell worldwide, and governments and central banks introduced emergency measures to prevent further financial collapse.

Bear Stearns had already been rescued in March 2008, so it is sometimes confused with Lehman’s failure. The two events were different: Bear Stearns was acquired with official assistance, while Lehman entered bankruptcy.