Lehman Brothers’ bankruptcy on 15 September 2008 became a defining trigger of the global financial crisis and stock-market crash.
Lehman Brothers was a major American investment bank with extensive exposure to the U.S. housing and mortgage markets. After the housing bubble burst, losses on mortgage-related assets damaged confidence in the firm’s balance sheet and made emergency financing increasingly difficult.
The U.S. government and other institutions did not arrange a rescue for Lehman, and the firm filed the largest bankruptcy in U.S. history at that time. Its collapse intensified fear about counterparty risk throughout the financial system.
The failure was part of a wider crisis, not its sole cause. Bear Stearns had already been rescued in March 2008, while the government later supported AIG and other institutions. Stock markets continued falling after Lehman’s filing, reaching major lows in early 2009.