Lessons from Lehman’s collapse – 15 years on

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Aside from the iconic images of bankers walking out with all their possessions in boxes, what can investors take from the Lehman Brothers collapse 15 years ago?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

15 September 2023

When Lehman Brothers collapsed on 15 September 2008, the initial stock market reaction to one of the largest banks on Wall Street going bust wasn’t that big. The FTSE All-Share finished that week down less than 2%. After all, Lehman’s collapse wasn’t the cause of the financial crisis – it was already well underway.

But people soon realised the scale of the problem. When other banks started to look like they could face the same fate, worries hit new heights.

The following two months would go on to include seven of the 10 worst days on the UK stock market over the last 20 years.

I was on the HL stockbroking desk throughout the financial crisis. I saw and heard firsthand the impact falling stock markets had on clients and