Which New York trust company failed during the Panic of 1907, intensifying the U.S. financial crisis?

Knickerbocker Trust Company failed during the Panic of 1907, intensifying the U.S. financial crisis.

The Knickerbocker was one of New York’s largest trust companies. A failed attempt to corner United Copper Company shares damaged public confidence in its leadership, and depositors began withdrawing funds. On October 22, 1907, the institution suspended operations after banks declined to provide additional support.

The failure triggered runs on other trust companies and spread fear through the banking system. Financier J. P. Morgan organized emergency lending and encouraged banks to cooperate, helping prevent a wider collapse. The crisis exposed the weakness of a financial system without a U.S. central bank.

The Panic of 1907 is sometimes described simply as a stock-market crash, but it was also a banking and credit crisis. Its aftermath helped build political support for the Federal Reserve, which Congress created in 1913.