Lehman Brothers collapsed in September 2008, becoming a symbol of the global financial crisis.
The investment bank filed for Chapter 11 bankruptcy protection on September 15, 2008. With more than $600 billion in assets, it was the largest bankruptcy filing in U.S. history at the time. Lehman had built substantial exposure to mortgage-related securities and real-estate investments before the housing market deteriorated.
Lehman’s failure intensified an already severe crisis in credit markets. It was followed by emergency government measures, including support for financial institutions and the Troubled Asset Relief Program. Bear Stearns had already been rescued in March 2008, so it is often mistakenly named as the bank whose failure marked the crisis’s decisive September shock.