Lehman Brothers’ September 15, 2008 bankruptcy became a defining trigger of the global stock-market crash.
Lehman Brothers filed for bankruptcy protection on September 15, 2008, making it the largest bankruptcy filing in U.S. history at that time. The investment bank had accumulated substantial exposure to mortgage-related assets and was unable to secure a buyer or sufficient government-backed support.
The failure shocked markets because Lehman was deeply connected to other banks and financial institutions. Its bankruptcy increased uncertainty about which firms might survive and made lenders more reluctant to provide short-term funding. Credit markets tightened, stock prices fell, and the financial crisis moved into a more acute phase.
Lehman was not the sole cause of the crisis. The broader collapse involved the U.S. housing downturn, risky mortgage lending, complex securitized products, excessive leverage, and weaknesses in financial regulation. Merrill Lynch was acquired by Bank of America at the same time, while the U.S. government later supported other institutions through emergency programs.
The bankruptcy remains one of the clearest symbols of the 2008 financial crisis.