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By Matthew DOBBS, Head of Global Small Caps, Schroders
The collapse of the US investment bank on 15 September 2008 sent shockwaves through markets. We explain the impact in the decade since. Ten years ago, US investment bank Lehman Brothers filed for bankruptcy, marking the most symbolic moment of the global financial crisis.
It remains the largest bankruptcy filing in US history. The demise of Lehman on 15 September 2008 was just the tip of the iceberg. Little did we know but at the time the whole global financial system was on the brink of collapse. The underlying cause was the failing US housing market, in particular the subprime mortgage sector, which lent to borrowers with poor credit histories.
These subprime mortgages...
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