Lehman Brothers’ collapse in September 2008 intensified the global stock-market crash.
The investment bank filed for bankruptcy on 15 September 2008, making it the largest bankruptcy filing in U.S. history at that time. Lehman had accumulated major exposures to mortgage-related assets and was unable to find a buyer or obtain a government rescue.
The filing shocked financial markets because Lehman was deeply connected to banks, funds, and other institutions around the world. Credit markets seized up, investors sold risky assets, and stock indexes fell sharply. The crisis also led to the rescue of insurer AIG and extraordinary interventions by central banks and governments.
Bear Stearns had already been rescued in March 2008, but its failure did not trigger the same immediate worldwide shock. Lehman’s bankruptcy became a defining symbol of the financial crisis, although the crash had begun before the filing.