Which company’s bankruptcy became a defining trigger of the 2008 global financial crisis?

Lehman Brothers’ bankruptcy became a defining trigger of the 2008 global financial crisis.

Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. With more than $600 billion in assets, it was the largest bankruptcy filing in U.S. history at that time. The failure followed the collapse of the U.S. housing bubble and mounting losses tied to mortgage-related securities.

Lehman’s failure intensified fear about the solvency of banks and the reliability of credit markets. Interbank lending tightened, stock markets plunged, and governments responded with rescue programs, guarantees, and emergency monetary measures.

Bear Stearns had already been rescued and sold to JPMorgan Chase in March 2008, so it is a common alternative answer. Merrill Lynch was acquired by Bank of America in September, while Washington Mutual failed later that month.