Lehman Brothers collapse

Lehman Brothers was a major investment bank that collapsed in September 2008, triggering a global financial crisis. The firm heavily invested in mortgage-backed securities, which lost value as housing prices plummeted. When Lehman couldn't find a buyer or receive government support, it filed for bankruptcy, marking the largest in U.S. history. This event sent shockwaves through financial markets, leading to a loss of confidence and widespread panic. Banks restricted lending, credit markets froze, and the stock market plummeted, resulting in a severe recession that affected economies worldwide. The collapse highlighted risks in the financial system and led to regulatory reforms.