Which investment bank's bankruptcy marked a key moment in the 2008 global financial crisis?

Lehman Brothers' bankruptcy marked a key moment in the 2008 global financial crisis.

The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008, after suffering enormous losses connected to the U.S. housing market and mortgage-backed securities. With about $639 billion in assets, it became the largest bankruptcy filing in U.S. history at that time.

Lehman's collapse intensified fear about the financial system because banks and investors were linked through loans, derivatives, and other contracts. Credit markets seized up, stock markets fell sharply, and governments responded with emergency lending, guarantees, and bank recapitalization programs. The crisis had already begun before Lehman's failure, particularly after the housing bubble burst and Bear Stearns collapsed in March 2008.

A common mistake is to call Lehman a stock-market crash itself. Its bankruptcy was a major trigger and symbol within a wider financial crisis. The Dow's biggest percentage decline during the 2008 episode occurred on October 15, while the broader bear market eventually reached its low in March 2009.