Which bank’s failure intensified the Panic of 1907 in the United States?

The failure of the Knickerbocker Trust Company intensified the Panic of 1907 in the United States.

Knickerbocker Trust was one of New York’s largest trust companies. It became associated with a failed attempt to corner the stock of United Copper Company, and depositors began withdrawing funds. On October 22, 1907, the firm suspended operations after banks refused further assistance. The failure helped spread fear through New York’s financial system.

J. P. Morgan organized emergency lending and coordinated support for threatened institutions, helping prevent a broader collapse. The panic exposed the weakness of a banking system without a central bank capable of acting as a lender of last resort. Its aftermath contributed to the creation of the Federal Reserve System in 1913. Knickerbocker Trust was not itself a conventional commercial bank, but a trust company that accepted deposits and made investments.