The Great Panic Begins
Lehman Brothers experienced the world’s largest bankruptcy ever on September 15, 2008, wresting that title from WorldCom. Its failure sent shock waves across Wall Street and nearly brought down the entire economy. Lehman Brothers was another victim of a liquidity crisis engendered by a run on its assets, as rumors continued to circulate over the firm’s deteriorating financial condition. Even though it had arranged a bailout for Bear Stearns, the federal government refused to do so for Lehman Brothers.