Lehman Brothers’ September 2008 bankruptcy became the largest in U.S. history and intensified the global crash.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008, after suffering enormous losses tied to mortgage-related securities and real-estate finance. Its failure followed the collapse or emergency rescue of other major financial institutions and sharply increased fears about counterparty risk.
The bankruptcy froze important parts of credit markets and contributed to a worldwide loss of confidence. Governments and central banks responded with emergency lending, bank rescues, guarantees, and interest-rate cuts. The event became a defining moment of the global financial crisis.
Lehman is sometimes confused with Bear Stearns, which was rescued in March 2008, or Washington Mutual, whose bank holding company failed later that month. Lehman’s filing was the largest U.S. bankruptcy at the time, measured by assets.