The massive exodus of most of Lehman Brother‘s clients, drastic losses in its stock, and devaluation of assets by credit rating agencies, was sparked by Lehman Brother‘s involvement in the subprime mortgage crisis.

Excessive risk taking and subsequent allegations of negligence and malfeasance played a major role in the unfolding of The global financial crisis.

The global financial crisis began in 2007 with a crisis in the subprime mortgage market in the United States.

Then developed into a full-blown international banking crisis with the federal takeover of Fannie Mae and Freddie Mac and the collapse of most major investment banks.

The global financial crisis included the bankruptcy of Lehman Brothers on September 15, 2008.

Lehman Brothers shares tumbled over 90% , the Dow Jones closed down just over 500 points, which was at the time the largest drop in a single day since the days following the attacks on September 11, 2001.