Lehman Brothers' bankruptcy became the pivotal event of the 2008 global financial crisis.
The investment bank filed for bankruptcy on September 15, 2008, after suffering enormous losses tied largely to mortgage-related assets. It was the largest bankruptcy filing in United States history at that time. The failure intensified fear that other financial institutions could also collapse.
Lehman's bankruptcy followed the March 2008 rescue and sale of Bear Stearns. Unlike Bear Stearns, Lehman was not rescued, and its failure disrupted credit markets worldwide. Merrill Lynch was acquired by Bank of America during the same weekend, while American International Group received emergency government support shortly afterward.
The episode is often called a stock-market crash, but the crisis involved interconnected banking, housing, credit, and insurance markets. Major equity indexes plunged during the following months, while governments and central banks introduced extraordinary measures to prevent a broader financial breakdown.