What institution's failure triggered the Panic of 1907 in the United States?

The Knickerbocker Trust Company’s failure helped trigger the Panic of 1907 in the United States.

Knickerbocker Trust was New York’s third-largest trust company when a failed attempt to corner United Copper stock damaged confidence in its president, Charles T. Barney. A run began, and the company suspended operations on October 22, 1907. Depositors then rushed to withdraw money from other banks and trusts.

The panic spread through the financial system even though the original speculation involved a relatively small group of investors. J. P. Morgan organized emergency support, persuaded banks to provide liquidity, and helped stabilize key institutions. The crisis exposed the weakness of relying on private financiers during nationwide banking emergencies.

The Panic of 1907 became an important political argument for creating a central bank. Congress established the National Monetary Commission, and its work contributed to the Federal Reserve Act of 1913. Knickerbocker Trust was therefore a key trigger, but not the sole cause of the panic.