Summary of Lehman Brothers' bankruptcy

Lehman Brothers' bankruptcy was a crucial event in the 2008 global financial crisis. With over $600
billion in assets, Lehman Brothers was one of the world's largest investment banks. Nevertheless, as a
result of its large investments in hazardous assets such as subprime mortgages, it became insolvent and
declared bankruptcy on September 15, 2008.

The bankruptcy had a tremendous influence on financial markets, as investors panicked and began
liquidating their holdings. The interbank lending market was frozen, and many more financial institutions
faced failure. This resulted in a worldwide credit crunch, which forced several nations to enter a
recession.

Lehman Brothers' failure had far-reaching ramifications for the banking industry and financial regulation.
It prompted governments and regulators to examine the dangers presented by complex financial
instruments and establish new restrictions to prevent a repeat of the disaster.