Lehman Brothers collapse and the legacy of the 2008 financial crisis

The collapse of Lehman Brothers in September 2008 remains a defining moment in global financial history. During a critical weekend, top bankers met at the Federal Reserve in New York to seek a buyer for the 158-year-old institution, which held over $600 billion in assets. Potential rescuers included Bank of America and Barclays; however, Bank of America opted to acquire Merrill Lynch, and British regulators refused to guarantee Lehman's obligations without a lengthy shareholder vote. Following Treasury Secretary Henry Paulson's refusal to use public funds, Lehman Brothers filed for Chapter 11 bankruptcy on September 15, 2008, triggering widespread global market panic.

Reflecting on the crisis nearly two decades later, the global financial system is now more heavily capitalized and supervised. However, new vulnerabilities persist. In Romania, while the economy is significantly larger than it was during the 2008 recession—which saw a contraction of over 15%—risks such as rising public debt, budget deficits, and the growth of the non-banking financial sector present modern challenges in a difficult international context.