Which Wall Street firm’s September 2008 bankruptcy intensified the global financial crisis?

Lehman Brothers’ September 2008 bankruptcy intensified the global financial crisis.

Lehman Brothers filed for bankruptcy on 15 September 2008, making it the largest bankruptcy filing in US history at that time. The investment bank had substantial exposure to mortgage-related securities and commercial real estate. Its failure followed the collapse of the US housing boom and a widening crisis in credit markets.

The bankruptcy shocked investors because Lehman was a major global financial institution deeply connected to banks, funds, and trading partners. Money-market funds, interbank lending, and stock markets came under additional pressure. The event is widely treated as a turning point in the crisis, although the problems had developed over several years.

Other firms followed different paths. Bear Stearns was rescued through a JPMorgan Chase acquisition earlier in 2008, while Merrill Lynch was acquired by Bank of America. The US government later supported the financial system through the Troubled Asset Relief Program and other emergency measures.