On this day, eight years ago, U.S. banking giant Lehman Brothers filed for bankruptcy, sending shockwaves across the global financial markets. Now in 2016, has the world learned anything from the worst day in the history of banking?
"The banking sector has still not recovered," David Buik, a market commentator at Panmure Gordon told CNBC via email. "Though the market is grateful for small mercies – massive quantitative easing, which bought time and restored confidence, regulation's hob-nailed boots left their prints across the backs of every bank in the world."
The investment bank filed for bankruptcy in the early hours of September 15 and by afternoon central banks across the globe had started putting together a plan of action to put a brake on plummeting financial markets. By end of the day, more than 25,000 staff members at Lehman prepared for redundancy.
"The Lehman Brothers collapse made financial institutions realise that the most precious thing they are entrusted with is trust – and that winning that back was going to take both structural and cultural change that would have been unimaginable just a few years before," Michael Cole-Fontayn, EMEA Chairman at BNY Mellon told CNBC via email. "Since 2008, banks around the world have strengthened their balance sheets, held more capital and more liquid assets. They've invested heavily in risk management. "
Fontayn adds that banks have gone back to basics, stepping away from high-risk activities such as repackaging and reselling loans.
However, the state of the banking system still remains fragile. A number of analysts have said that the U.S. banking system is in a better state than the European banking system. The reasons for these have been a low interest rate environment, sluggish economic growth and uncertainties surrounding Brexit.