Which New York bank’s failure helped trigger the Panic of 1907 in the United States?

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

Knickerbocker Trust collapsed on October 22, 1907, after a failed attempt to corner the stock of the United Copper Company damaged confidence in its leadership. Depositors withdrew funds, and fear spread to other trust companies and banks in New York.

The crisis became a major test of the U.S. financial system, which had no central bank at the time. Financier J. P. Morgan coordinated private support, while the Treasury supplied additional money. The panic ultimately strengthened arguments for creating a central bank.

The Federal Reserve System was established in 1913. Knickerbocker Trust’s failure was a key spark, but the broader panic also reflected weak liquidity arrangements, concentrated banking power, and the interconnectedness of New York finance.