15 years ago today, the $680 billion asset management firm Lehman Brothers collapsed ahead of a recession and, subsequently, the 2008 financial crisis. Indeed, the bankruptcy filing remains the largest in United States history more than a decade later.
The collapse remains one of the largest of its kind in the history of the United States. Moreover, the events that preceded the crisis remain a cautionary tale for the financial sector. Still, with $613 billion in debt, the event incited an economic tailspin for the country.
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15 Years Ago Today, Lehman Brothers filed for the US’ Largest Bankruptcy
To this day, any economic vulnerability in the market is routinely compared to the year 2008. A recession that preceded the US financial crisis of that year is still a moment remembered by many and has incited constant reflection. Subsequently, the event that kicked off this monumental downturn occurred on this very day.
Specifically, 15 years ago, Lehman Brothers collapsed ahead of the 2008 crisis. Indeed, the $680 billion asset manager still maintains the largest bankruptcy filing in the history of the United States. Shortly after the filing, the country entered a recession.
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The financial giant was reportedly more than $600 billion in debt when it collapsed. Moreover, its failure left thousands of workers unemployed and barreled into economic frailty. A string of risky mortgages was the foundation of a financial system that had difficulty establishing stability. Subsequently, homeowners couldn’t afford mortgages, which led to loan defaults and unintended reverberations throughout the market.
Still, more than a decade later, the event remains pivotal in American history. The collapse would forever play a role in the shift in global economics. Moreover, amid the treacherous labor market and financial ruin that abounded, the sector would be forever changed. However, through that chaos, digital assets were born and would take a step forward. Only leaving behind the lessons of the failures that brought about the financial crisis and housing market collapse of 2008.