Which company’s September 15, 2008 bankruptcy intensified the global financial-market crash?

Lehman Brothers’ bankruptcy on September 15, 2008, intensified the global financial-market crash.

Lehman Brothers was a major American investment bank with extensive exposure to mortgages and mortgage-related securities. After losses mounted during the subprime mortgage crisis, it could not secure a private rescue or government-backed buyer and filed for bankruptcy protection.

The filing was the largest bankruptcy in United States history at that time. It sharply increased fear about counterparty risk, because banks and other institutions did not know which firms might fail or which assets were reliable.

The bankruptcy did not cause the entire crisis by itself. Earlier failures and rescues, including Bear Stearns in March 2008, had already revealed serious weaknesses in the financial system. Lehman’s collapse made the panic much more severe.