Lehman Brothers’ September 2008 bankruptcy became the largest bankruptcy filing in United States history.
Lehman Brothers filed for Chapter 11 bankruptcy protection on 15 September 2008. The investment bank had accumulated substantial exposure to mortgages and mortgage-related securities, particularly as the United States housing market weakened.
Its failure intensified the global financial crisis because Lehman was deeply connected to banks, funds, insurers, and other financial institutions. The filing sharply damaged confidence and contributed to freezing credit markets around the world.
Lehman is sometimes confused with Bear Stearns, another major investment bank rescued earlier in 2008. Bear Stearns was sold to JPMorgan Chase with government assistance, while Lehman entered bankruptcy. The contrasting outcomes illustrated how quickly the crisis changed and why the failure became a landmark event.