Lehman Files Biggest Chapter 11 Ever

Bankruptcy sends shockwaves through financial world
By Jim O'Neill,  Newser User
Posted Sep 15, 2008 7:42 AM CDT
The Federal Reserve Bank of New York, where high level meetings were held in a last attempt to save Lehman Brothers, is photographed Sunday, Sept. 14, 2008.    (AP Photo/David Karp)
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(Newser) – Lehman Brothers gasped its last breath this morning, filing for Chapter 11 protection in Manhattan under a crushing $613 billion in debt, the largest—and potentially most frightening—bankruptcy in US history, reports Bloomberg. Experts say the filing is likely to trigger a domino effect in the US economy.

Lehman was felled by the collapse of the mortgage-securities market it helped create, and a possible rescue by Barclays and Bank of America fell apart this weekend, signaling its death knell. Lehman owed hundreds of millions to banks in Asia, had lost 94% of its value over the past year, and has struggled to raise funds as its reputation waned. Lehman has about 25,000 employees worldwide.