Lehman Brothers, a prosperous investment bank founded in 1850, was at the height of its success in 2006 with revenues totaling $19 billion and over 25,000 employees. However, the bank’s aggressive expansion and risky lending practices, particularly in the housing market, led to the financial crisis of 2008.
When Bear Stearns became the first victim of the subprime crisis in March 2008, regulators and markets grew concerned about other investment banks, including Lehman Brothers. In June 2008, Lehman Brothers announced a quarterly loss of $2.8 billion, intensifying the anxiety on Wall Street. Despite attempts to save the bank, Lehman Brothers filed for bankruptcy on September 15, 2008, with debts totaling $613 billion. The failure of Lehman Brothers marked the beginning of the global financial crisis.