What is Lehman Brothers?
It was a US-based financial firm that filed for bankruptcy on September 15, 2008. The collapse of one of the world's biggest investment banks sent shockwaves through world markets, sparked panic among investors and played a major part in the global financial crisis.
Where have you heard about Lehman Brothers?
Anyone interested in finance has probably heard how its collapse affected global economies. Stock markets and the value of the dollar plummeted. Soon afterwards, Ireland went into recession and the UK government was forced to bail out institutions including Lloyds and RBS.
What you need to know about Lehman Brothers.
First founded in 1850, it was one of the biggest US financial institutions. Its focus on mortgage-backed securities meant the US housing market collapse was disastrous for the firm. As defaults on sub-prime mortgages soared, Lehman Brothers lost billions and its share price plummeted. Following an exodus of clients and devaluation of assets, Barclays was in talks to rescue the bank, but the US government refused to use its money to help. This effectively forced the firm to file for bankruptcy, a move that affected markets for years to come.