Lehman Brothers Collapse

Lehman Brothers’ 2008 collapse used Repo 105 transactions to hide $50 billion in liabilities, triggering the global financial crisis. This 158-year-old bank’s failure exceeded the average bankruptcy in scale, wiping out $639 billion in market value. Unlike #8 Wells Fargo’s systemic culture, Lehman’s crisis stemmed from a single accounting trick—a 50% larger leverage disguise than similar firms. The aftermath spurred the 2010 Dodd-Frank Act, which reformed 30% of banking regulations.