Lehman Brothers' September 2008 bankruptcy became the largest bankruptcy in U.S. history during the global market crash.
The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008, after failing to find a buyer or obtain sufficient government support. Lehman reported approximately $639 billion in assets and $619 billion in debt, making its collapse vastly larger than any previous U.S. bankruptcy at the time.
The failure intensified the financial crisis that had already been developing through the collapse of the U.S. housing bubble and the spread of losses from mortgage-related securities. Markets around the world plunged, credit became harder to obtain, and governments responded with emergency lending, bank rescues, and stimulus programs.
Lehman Brothers is often confused with Bear Stearns, another major investment bank that failed earlier in 2008. Bear Stearns was rescued through a sale to JPMorgan Chase in March, whereas Lehman entered bankruptcy. The bankruptcy is widely regarded as a decisive event in the 2008 financial crisis.