Lehman Brothers’ 2008 collapse became the largest bankruptcy filing in American history at that time.
The investment bank filed for Chapter 11 protection on 15 September 2008, reporting assets of about $639 billion. Its size, international operations, and complex obligations made the filing exceptionally difficult to unwind. The bankruptcy followed months of losses connected with mortgage-related assets and a failed effort to secure a buyer or sufficient public backing.
Lehman’s failure intensified the global financial crisis because banks and investors could no longer assume that major financial institutions would remain stable. Interbank lending and short-term funding markets came under severe pressure, and equity markets fell sharply worldwide. Merrill Lynch was acquired by Bank of America in the same weekend, while AIG soon required a government rescue.
The record refers to the size of the U.S. bankruptcy case at the time, not to the largest corporate bankruptcy by every later measure. Later cases and different accounting definitions can produce different rankings, which is why the date and historical qualification matter.