Which American bank’s failure intensified the Panic of 1907?

The failure of the Knickerbocker Trust Company intensified the Panic of 1907.

Knickerbocker Trust, then one of New York’s largest trust companies, collapsed after a failed attempt to corner the stock of the United Copper Company. Depositors began withdrawing funds on October 22, 1907, and the institution suspended operations shortly afterward.

The failure accelerated a wider banking panic. Trust companies faced runs, credit became scarce, and the New York Stock Exchange experienced severe pressure. Financier J. P. Morgan organized emergency support with other bankers, helping stabilize the financial system.

The panic also strengthened arguments for a formal central bank in the United States. Congress created the National Monetary Commission, and the Federal Reserve System was eventually established in 1913. Knickerbocker Trust is sometimes confused with Jay Cooke & Company, whose failure was central to the Panic of 1873.