Lehman Brothers’ bankruptcy is widely seen as the trigger for the 2008 global stock-market crash.
The investment bank filed for bankruptcy on 15 September 2008 after suffering enormous losses tied to U.S. mortgage-related securities and real-estate investments. Its failure was the largest bankruptcy filing in U.S. history at the time and intensified fears that financial institutions were unable to assess or contain their risks.
Lehman’s collapse did not create the entire crisis by itself. Problems had already spread through subprime mortgages, structured securities, excessive leverage, and fragile short-term funding markets. Other institutions, including Bear Stearns and Washington Mutual, had also failed or been rescued. The bankruptcy became a defining symbol because it triggered a severe loss of confidence and was followed by emergency government interventions around the world.