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  • Writer's pictureIshfaaq Peerally

Bankruptcy of Lehman Brothers and The 2008 Global Financial Crisis

"What we know about the global financial crisis is that we don't know very much."

- Paul Samuelson

Lehman Brothers, the fourth largest investment bank in the world, filed for a record bankruptcy of 619 Billions USD on 15th of September 2008 and consequently, caused a global recession. 10 years later, the US economy and stock market has fully recovered but the scars of the financial crisis remain.

The global financial crisis is still a mystery for most people. So here is a timeline of the event:

1. Global saving Glut (2003-2007)

2. Housing Bubble (2003-2007)

3. BNP Parisbas warns about the Subprime mortgages (9th August 2007)

4. British bank Northern Rock saved by the UK government (22nd of February 2008)

5. Bear Stern acquired by JPMorgan Chase (1st of April 2008)

6. Fannie Mae and Freddie Mac nationalised by the US government (7th of September 2008)

7. Merrill Lynch acquired by Bank of America (14th of September 2008)

8. Bankruptcy of Lehman Brothers (15th of September 2008)

9. US Government bailout of American International Group (16th of September 2008)

10. Crash of the US stock markets (2008-2009)

11. Eurozone crisis (2009-present)

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