The U.S. financial panic that began after the Knickerbocker Trust failed in 1907 was the Panic of 1907.
Knickerbocker Trust, one of New York’s largest trust companies, collapsed after an unsuccessful attempt to corner the stock of the United Copper Company. Depositors then rushed to withdraw funds from other trust companies, producing a wider banking panic.
Financier J. P. Morgan organized emergency support with other bankers and helped prevent the failure of additional institutions. The panic exposed weaknesses in the U.S. banking system, which lacked a central bank able to supply liquidity during emergencies.
The Panic of 1907 helped build political support for the Federal Reserve System. Congress created the Federal Reserve in 1913, although the panic itself was not a stock-market crash in the narrow modern sense.