Lehman Brothers filed for bankruptcy on September 15, 2008, becoming a defining event of the global financial crisis.
Lehman Brothers Holdings Inc. was a major American investment bank headquartered in New York. After suffering heavy losses from mortgage-related securities and the collapse of the U.S. housing market, it could not secure a buyer or sufficient government-backed support. Its Chapter 11 filing became the largest bankruptcy filing in U.S. history at the time.
The bankruptcy intensified panic in financial markets. Banks became less willing to lend to one another, credit markets seized up, and stock markets around the world fell sharply. The event is frequently treated as a major turning point in the 2007–2008 financial crisis, although the crisis had already been developing for more than a year.
Bear Stearns is sometimes confused with Lehman Brothers because it also failed during the crisis. Bear Stearns was rescued through a sale to JPMorgan Chase in March 2008, whereas Lehman entered bankruptcy and was not rescued through a comparable takeover.