Which bank failure became the signature event of the Panic of 1907 in the United States?

The failure of Knickerbocker Trust became the signature event of the Panic of 1907 in the United States.

Knickerbocker Trust, then one of New York’s largest trust companies, suffered a run after financier Charles W. Morse was associated with a failed attempt to corner the stock of United Copper. The institution suspended operations on October 22, 1907, intensifying fear across the financial system.

Trust companies held deposits and made investments but were subject to fewer reserve requirements than commercial banks. Their growing role made the system vulnerable when depositors demanded cash. J. P. Morgan organized private support for banks and companies, helping contain the crisis.

The panic exposed weaknesses in the United States banking system and contributed to the creation of the Federal Reserve in 1913. Knickerbocker Trust was not the only institution affected, but its suspension is often used as the defining moment of the panic.