Wall Street Meltdown 2008 - Stability Engineering Lens

Stability Engineering – Volume 9 www.manhattanproject20.com 1 117-218-D The Roots of the 2008 Wall Street Meltdown A Stability Engineering Perspective September 2008 On September 15, 2008, Lehman Brothers filed for bankruptcy. Financial markets convulsed. The following day, the Federal Reserve intervened to support AIG. Credit markets seized. Liquidity disappeared from important parts of the financial system. Institutions that had appeared enormous and sophisticated suddenly seemed frighteningly fragile.