Which New York financial institution's 1907 failure helped trigger the Panic of 1907?

The Knickerbocker Trust Company’s failure helped trigger the Panic of 1907.

The crisis began after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme collapsed, depositors and creditors questioned institutions connected to the participants. A run on Knickerbocker Trust followed, and the company suspended operations on October 22, 1907.

The panic spread through trust companies, banks, and securities markets. The United States had no modern central bank to provide emergency liquidity, so private financiers played a crucial role. J. P. Morgan organized support for threatened institutions and helped coordinate a response, though the intervention could not prevent a severe financial contraction.

The Panic of 1907 helped build political support for creating the Federal Reserve System. Congress established the Federal Reserve in 1913, giving the United States a central institution with responsibilities for monetary policy and financial stability. Knickerbocker Trust is sometimes confused with the later banking institutions named Knickerbocker, but the failed New York trust company was the key institution in this episode.