What is the importance of Lehman Brothers to the US?

Answer 1

Lehman Brothers was a significant player in the U.S. financial landscape, particularly during the 2008 financial crisis when its bankruptcy marked the largest in U.S. history. This event triggered a widespread loss of confidence in financial institutions, leading to a global economic downturn. The collapse highlighted the risks of excessive leverage and the interconnectedness of financial markets, prompting regulatory reforms aimed at increasing transparency and stability in the financial system. Lehman Brothers' failure serves as a cautionary tale about the consequences of inadequate risk management and regulatory oversight.