Which company’s failure in September 2008 intensified the global financial crisis?

Lehman Brothers’ failure in September 2008 intensified the global financial crisis.

The investment bank filed for bankruptcy on 15 September 2008, making it the largest bankruptcy filing in United States history at the time. Its collapse shocked markets because Lehman had extensive links to banks, investors, and institutions around the world.

Lehman had accumulated large exposures to mortgages and securities connected to the United States housing boom. As house prices weakened and mortgage defaults rose, the value of those assets became uncertain. Investors began doubting the strength of major financial institutions and withdrew funding from vulnerable firms.

The crisis had begun before Lehman’s bankruptcy, and other firms had already suffered. Bear Stearns was rescued in March 2008, while the government later supported AIG and other parts of the financial system. Lehman’s failure nevertheless became the defining corporate event of the 2008 crash.