Lehman Brothers’ collapse in September 2008 became a defining trigger of the global financial crisis and stock-market crash.
Lehman Brothers filed for bankruptcy on September 15, 2008, after suffering enormous losses linked to U.S. subprime mortgages and other complex financial products. It was the largest bankruptcy filing in U.S. history at that time. The failure immediately intensified doubts about the solvency of banks and counterparties around the world.
Credit markets froze, equity prices plunged, and governments moved to prevent additional institutional failures. The crisis had begun before Lehman’s bankruptcy, especially through the weakening U.S. housing market and the collapse of mortgage-related securities, so Lehman was a catalyst rather than the sole cause.
Bear Stearns had already been rescued and sold to JPMorgan Chase in March 2008. Merrill Lynch was acquired by Bank of America in September, while Washington Mutual failed later that month. These separate events are often grouped together but were not the same transaction.