Which company’s 2008 bankruptcy became the largest bankruptcy filing in U.S. history?

Lehman Brothers became the largest bankruptcy filing in U.S. history when it entered bankruptcy in 2008.

The investment bank filed for Chapter 11 protection on September 15, 2008. Its collapse followed years of expansion into mortgage-related securities and heavy use of borrowed money. As U.S. housing prices fell and mortgage losses increased, investors and trading partners questioned whether Lehman had enough capital to survive.

The bankruptcy intensified the global financial crisis. Money-market funds, banks, insurers, and other institutions faced losses or uncertainty, while credit markets became less willing to lend. The failure also damaged confidence in the idea that large financial firms could always rely on government support.

Lehman’s bankruptcy is often confused with Bear Stearns’ rescue earlier in 2008. Bear Stearns was acquired by JPMorgan Chase with government assistance, whereas Lehman entered court-supervised bankruptcy. Lehman’s collapse was one of the defining events of the 2008 stock-market and credit-market crash.