The 1907 U.S. financial crisis triggered by the Knickerbocker Trust Company failure was the Panic of 1907.
The crisis began after an unsuccessful attempt to corner the stock of United Copper Company in October 1907. When the scheme collapsed, depositors rushed to withdraw money from associated financial institutions. The failure of Knickerbocker Trust, then New York's third-largest trust company, intensified the panic.
Banker J. P. Morgan organized emergency private support to stabilize banks and the stock market. The episode exposed weaknesses in the U.S. banking system, which lacked a central bank capable of acting as a lender of last resort. It helped build political support for the creation of the Federal Reserve System in 1913.