Lehman Brothers filed for bankruptcy on September 15, 2008, becoming the largest U.S. bankruptcy at that time.
The investment bank had expanded heavily into mortgage-backed securities and real-estate lending. When the U.S. housing market deteriorated, Lehman suffered severe losses and could not secure a buyer or sufficient government support.
Its Chapter 11 filing listed roughly $639 billion in assets and $619 billion in debt. The collapse intensified the global financial crisis, contributing to a sharp freeze in credit markets and widespread losses for banks and investors.
Lehman's failure is often confused with Bear Stearns, which was rescued through a sale to JPMorgan Chase in March 2008. Merrill Lynch, another major investment bank, was acquired by Bank of America during the same crisis.