Lehman Brothers intensified the Global Financial Crisis when it filed for bankruptcy on September 15, 2008. At the time, it was the largest bankruptcy filing in United States history, with more than $600 billion in assets listed.
Lehman had built a major business in mortgage-related securities and became heavily exposed to the collapse of the U.S. housing market. When confidence in its balance sheet disappeared, potential buyers and government officials failed to agree on a rescue. Its bankruptcy shocked financial markets because Lehman was deeply connected to banks, investors, and trading partners worldwide.
The failure did not cause the entire crisis by itself. Earlier events included the collapse of the subprime-mortgage market and the rescue of Bear Stearns in March 2008. Lehman’s collapse, however, marked a dramatic escalation, followed by severe falls in stock markets, emergency lending, and government interventions across several countries.