Which U.S. financial crisis followed the collapse of the investment bank Lehman Brothers in September 2008?

The U.S. financial crisis that followed Lehman Brothers’ collapse in September 2008 was the global financial crisis.

Lehman Brothers filed for bankruptcy on September 15, 2008, after losses connected to mortgage-related securities and an inability to secure a rescue or buyer. The failure intensified stress in credit markets and helped trigger a worldwide loss of confidence. Stock markets fell sharply, banks faced liquidity problems, and governments intervened to prevent broader financial collapse.

The crisis had developed before Lehman’s bankruptcy. U.S. house prices had fallen, subprime mortgage defaults had risen, and institutions held complex securities whose values became uncertain. The U.S. government and Federal Reserve supported emergency measures, including the Troubled Asset Relief Program. The crisis was followed by the Great Recession, but those terms are not identical: the financial crisis describes the banking and market breakdown, while the recession describes the subsequent economic contraction.