Lehman Brothers collapsed during the 2008 crisis, intensifying the global stock-market crash.
The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008. It was the largest bankruptcy filing in U.S. history at that time, with liabilities of roughly $619 billion. Lehman’s failure followed years of expansion into mortgage-related securities and heavy reliance on borrowed money.
The bankruptcy immediately heightened fears about the safety of financial institutions and the interconnectedness of global markets. Stock indexes fell sharply in the United States and abroad, while credit markets became exceptionally difficult to use.
Bear Stearns had already been rescued and sold to JPMorgan Chase in March 2008, so it is a common mix-up. Merrill Lynch was acquired by Bank of America during the same crisis, while Washington Mutual failed later in September.