Lehman Brothers filed for bankruptcy on September 15, 2008, intensifying the global financial crash.
With about $639 billion in assets, Lehman's filing was the largest bankruptcy in U.S. history at the time. The investment bank had accumulated major exposure to mortgages and mortgage-related securities. As housing prices fell and mortgage defaults rose, investors lost confidence in the firm's ability to meet its obligations.
Lehman had sought a sale, but negotiations with potential buyers did not produce a government-supported rescue. Its failure sent shock waves through credit markets because banks and other institutions were linked through complex financial contracts. The collapse also contributed to a sharp fall in stock markets worldwide.
The crisis did not begin with Lehman: U.S. housing and credit problems had been developing for years, and Bear Stearns had already failed earlier in 2008. However, Lehman's bankruptcy became the defining symbol of the crisis and was followed by extraordinary government and central-bank interventions.