bankruptcy of Lehman Brothers, collapse of the investment bank Lehman Brothers that occurred on September 15, 2008. It was the largest bankruptcy in U.S. history at that time, and it was among the most significant events of the financial crisis of 2007–08.
Lehman Brothers was founded in 1850 by three brothers who emigrated to the United States from Germany, initially running a store in Montgomery, Alabama. But they soon turned to cotton trading and shifted operations to New York. Lehman remained a commodities house until the early 20th century, when its focus switched to public offerings, laying the foundations for a financial-services institution that would become one of the world’s most significant investment banks.
By 2008, after…