Why did the Lehman brothers fail?

Answer 1

Lehman Brothers failed primarily due to its heavy exposure to subprime mortgages and risky financial products, which became unsustainable during the 2007-2008 financial crisis. As housing prices plummeted, the firm faced massive losses and a liquidity crisis, leading to a loss of investor confidence. Despite attempts to secure capital and find a buyer, Lehman was unable to stabilize its finances, ultimately filing for bankruptcy on September 15, 2008, marking one of the largest bankruptcies in U.S. history and significantly contributing to the global financial crisis.