Lehman Brothers collapsed in September 2008, intensifying the global financial crisis.
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 exceeding $600 billion.
Lehman had accumulated major exposure to mortgage-related assets during the U.S. housing boom. As housing prices fell and mortgage defaults rose, confidence in the firm deteriorated. Its bankruptcy intensified fear about the health of banks and financial institutions worldwide.
Bear Stearns had already required rescue and sale to JPMorgan Chase in March 2008, so it is often mentioned alongside Lehman. Merrill Lynch agreed to be acquired by Bank of America during the same turbulent weekend, but it did not file for bankruptcy.