Lehman Brothers’ failure in 2008 became a major turning point in the global financial crisis.
The investment bank filed for bankruptcy on September 15, 2008, after suffering enormous losses connected to mortgages and real-estate-related securities. Its bankruptcy was the largest in U.S. history at that time and sent shock waves through financial markets.
The collapse intensified concerns about the solvency of banks and the safety of short-term lending. Stock markets fell sharply, credit became harder to obtain, and governments and central banks introduced emergency measures to stabilize the financial system.
Lehman Brothers is often confused with Bear Stearns, another investment bank that collapsed earlier in 2008 and was acquired by JPMorgan Chase with government assistance. Lehman’s filing was the more dramatic bankruptcy event and a central marker of the crisis.