Lehman Brothers, founded in 1850, began as a small general store located in Montgomery, Alabama. Involved in cotton trading, Henry Lehman and his brother Emanuel soon joined forces and began to open branch offices in different cities across the South and Midwest. In the early 20th century, the firm became known as “the cotton kings” as it grew to become the world’s largest cotton merchant.

In the 1970s, the firm, now known as Lehman Brothers, began to diversify away from its core cotton trading business, transforming itself into one of the premiere investment banks in the United States. Led by the powerful, ambitious duo of Richard Fuld and Peter Peterson, the firm expanded into mergers and acquisitions, restructuring and capital markets. The firm grew to become an international investment bank and by the time of its bankruptcy, had over 25,000 employees and 46 offices in over 20 countries.

Lehman Brothers was seen as a top tier investment bank, competing and sometimes outperforming traditional competitors such as Morgan Stanley and Goldman Sachs. By the mid-2000s, the firm had become a major player in the subprime mortgage market. This market provided a source of short-term revenue growth but exposed the firm to a significant amount of risk.

In 2008, the subprime mortgage crisis began and Lehman Brothers saw its revenues decline substantially. Financial losses, accounting scandals, and liquidity concerns all compounded Lehman’s financial woes and eventually led to the firms’ collapse on September 15th, 2008. During the week of its bankruptcy, Lehman Brothers’ stock price fell to an all-time low of $0.18 per share.

Due to its size and prominence, Lehman Brothers’ bankruptcy spread shockwaves throughout the global financial system. As other financial institutions began to become affected, the 2008 financial crisis further intensified, leading to significant market volatility and concerns of a global recession.

Following Lehman Brothers' filing of bankruptcy, Barclays Bank and Nomura Holding acquired some of its assets. Currently, the operations and business of Lehman Brothers live on as a wholly owned subsidiary of Barclays Bank.

Throughout its long history, Lehman Brothers left a lasting and far-reaching effect on global finance. As one of the most influential drivers of Wall Street, the firm’s collapse had severe and long-reaching implications that left a lasting impact on the financial system and economy.