The Collapse of Lehman Brothers

The collapse of Lehman Brothers in September 2008 was a watershed event that pushed the global financial system and economy to the brink. The worst-case scenario was avoided, however, when governments and central banks around the world began to liquefy markets and stabilize financial asset prices as the magnitude of the crisis became evident. The turmoil of the months following the collapse of Lehman was one of the most unforgettable episodes during my tenure as governor of the Bank of Japan, equaled only by the Great East Japan Earthquake of March 2011 and the negotiations leading to the joint statement of the