Which bank’s collapse triggered the Panic of 1907 in the United States?

The Knickerbocker Trust Company’s collapse triggered the Panic of 1907 in the United States.

Knickerbocker Trust, then one of New York’s largest trust companies, became central to the panic after its president, Charles T. Barney, was linked to an unsuccessful attempt to corner the stock of United Copper. When the scheme failed in October 1907, depositors rushed to withdraw funds.

The run spread to other trust companies and banks. With no U.S. central bank operating at the time, financier J. P. Morgan organized emergency support and persuaded institutions to provide liquidity. The crisis exposed weaknesses in the American banking system.

The panic ultimately helped build political support for reform. The Aldrich–Vreeland Act of 1908 created emergency currency provisions, and the Federal Reserve System was established in 1913. Knickerbocker’s failure was the spark, not the sole underlying cause.