Which company’s bankruptcy was the largest in US history when the 2008 crash intensified?

Lehman Brothers was the company whose bankruptcy was the largest in US history when the 2008 crash intensified.

Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. Its filing listed about $639 billion in assets, making it the largest US bankruptcy at that time. The collapse sharply increased fear about the stability of banks and financial institutions worldwide.

Lehman had built a large exposure to mortgage-related securities and real estate finance. As housing markets weakened and investors lost confidence, the firm struggled to raise capital or find a buyer. Its failure helped freeze credit markets and accelerated the global stock-market decline.

The event is often confused with Bear Stearns’ rescue earlier in 2008. Bear Stearns was acquired by JPMorgan Chase with government assistance in March, while Lehman was allowed to fail in September. Washington Mutual later became the largest US bank failure, but it was not the largest corporate bankruptcy overall at that point.