Which U.S. bank’s September 2008 bankruptcy intensified the global financial-market crash?

Lehman Brothers’ September 2008 bankruptcy intensified the global financial-market crash.

Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. At the time, it was the largest bankruptcy filing in U.S. history. The firm had suffered major losses connected to mortgage-related assets and could not secure a buyer or sufficient government support.

The filing shocked markets because investors had expected authorities or another institution to prevent the collapse of a major investment bank. Credit markets tightened, share prices plunged, and confidence in the stability of financial institutions deteriorated rapidly. The failure became a central turning point in the global financial crisis.

Lehman’s collapse was part of a broader chain of problems, not an isolated event. Bear Stearns had been rescued earlier in 2008, while American International Group required emergency assistance shortly after Lehman failed. The crisis also exposed weaknesses in housing finance, securitized debt, leverage, and risk management.