Which U.S. company’s bankruptcy in 2008 became the largest in American history at that time?

Lehman Brothers became the largest U.S. bankruptcy at that time when it filed for Chapter 11 protection in 2008.

The filing on September 15, 2008, listed more than $600 billion in assets. Lehman had been a major global investment bank, but it carried substantial exposure to mortgage-related assets and commercial real estate. As the U.S. housing market deteriorated, the firm struggled to convince investors that it could withstand further losses.

The collapse shocked financial markets because Lehman was deeply connected to banks, insurers, funds, and trading counterparties. Short-term lending tightened, credit markets became less liquid, and stock indexes around the world fell. The failure also demonstrated how difficult it was to unwind a huge multinational financial institution quickly.

This bankruptcy is distinct from General Motors’ 2009 filing, which was also historic but involved an industrial automaker. Lehman’s case remains a central reference point for understanding systemic risk during the global financial crisis.