The collateral squeeze of 2008

Following Lehman Brothers' bankruptcy on September 15, 2008, the funding pressures that had affected financial firms since 2007 reached a new pitch. Lehman Brothers was a 158-year-old institution that had survived the panic of 1907 and the Great Depression. After it declared bankruptcy, concerns about counterparty risk escalated, and the financial crisis intensified to become the worst since that of 1931, which had led to the Great Depression.

Events earlier in 2008, notably JPMorgan's purchase