Which New York investment bank failed during the Panic of 1907, helping trigger the crisis?

Knickerbocker Trust Company failed during the Panic of 1907, helping trigger the crisis.

The Knickerbocker Trust Company, then one of New York’s largest trust companies, suspended operations on October 22, 1907. Its collapse followed a failed attempt to corner the stock of United Copper Company and a loss of public confidence in trust companies.

The failure sparked withdrawals from other financial institutions and intensified a nationwide banking panic. Financier J. P. Morgan organized private support for banks and trusts, helping stabilize the system after depositors began demanding cash.

The Panic of 1907 exposed weaknesses in the American banking structure, including the absence of a central bank able to act as lender of last resort. The crisis helped build political support for the Federal Reserve, which was created in 1913.