Lehman Brothers’ bankruptcy filing became a major trigger of the 2008 global financial crisis.
The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008, after suffering enormous losses connected to U.S. housing and mortgage-related securities. With assets of roughly $639 billion, it was the largest bankruptcy filing in U.S. history at the time.
Lehman’s collapse shocked financial markets because the firm was deeply connected to banks, investors, and trading counterparties worldwide. Credit markets seized up, stock prices fell sharply, and governments responded with emergency lending, guarantees, and rescue programs. The filing did not create the entire crisis: excessive mortgage lending, falling house prices, leverage, and fragile financial institutions had already produced severe instability.
Bear Stearns is a frequent mix-up because it failed earlier in 2008 and was acquired by JPMorgan Chase. Merrill Lynch was also sold during the crisis, but Lehman was the firm that entered bankruptcy.