What was the name of the trust whose failure helped trigger the Panic of 1907?

The story behind the answer

The failure of Knickerbocker Trust helped trigger the Panic of 1907.

Knickerbocker Trust Company, then one of New York's largest trust companies, suspended operations on October 22, 1907. The suspension followed a failed attempt to corner the stock of United Copper Company, associated with speculator F. Augustus Heinze and banker Charles W. Morse. Depositors rushed to withdraw funds, spreading fear through the financial system.

The panic was eventually contained through coordinated action led by financier J. P. Morgan. He organized emergency lending and persuaded banks to support institutions that might otherwise have collapsed. The episode exposed the weaknesses of a banking system without a permanent central bank.

The crisis helped build political support for the Federal Reserve System, which Congress created in 1913. Knickerbocker Trust was not itself a stock exchange; it was a trust company whose failure helped ignite the wider financial panic.

Source: Wikipedia · fact-checked Sept. 2026

Add question to a list

Choose a list to keep this question in: