Lehman Brothers Bankruptcy

Lehman Brothers was a major global financial services firm that declared bankruptcy in September 2008, marking the largest bankruptcy in U.S. history. This event was a significant moment in the financial crisis of 2007-2008, stemming from risky investments in mortgage-backed securities. When housing prices fell, Lehman's substantial debts became unmanageable, leading to a loss of investor confidence. The bankruptcy triggered panic in financial markets, resulting in severe economic repercussions worldwide, contributing to a deep recession and prompting government interventions to stabilize the financial system. Lehman Brothers's collapse exemplifies the systemic risks in interconnected financial markets.