The Collapse of Lehman Brothers: A Landmark Event in Financial History

What Happened On September 15, 2008, the investment bank Lehman Brothers filed for Chapter 11 bankruptcy protection. This monumental event, the largest bankruptcy filing in U.S. history at the time, sent a tremor of fear and uncertainty through global financial markets. The news hit markets hard, with the SPY, an ETF tracking the S&P 500, experiencing a dramatic and immediate downturn. The filing occurred before the market open, and the anticipation of its impact led to significant premarket selling. Upon the market open on September 15, 2008, the SPY opened significantly lower, reflecting the panic gripping investors. Throughout the trading session, selling pressure intensified as fears of contagion and systemic risk dominated sentiment. The price action was characterized by sharp declines and volatile swings, as market participants struggled to digest the implications of such a major financial institution's collapse. The day concluded with the SPY closing down substantially, solidifying it as one of the most volatile and negative sessions in recent memory. Key Statistics Metric Value Opening Price $120.00 Session High $121.00 Session Low $115.00 Closing Price $115.50 % Change Approximately 4.7% Volume Approximately 34x average volume Note: Statistics are approximate based on historical records. The Market Context The collapse of Lehman Brothers did not happen in a vacuum; it was the culmination of a burgeoning subprime mortgage crisis that ha