Which New York trust company failed in October 1907, helping trigger the Panic of 1907?

The Knickerbocker Trust Company failed in October 1907, helping trigger the Panic of 1907.

Knickerbocker Trust was one of New York City’s largest trust companies. Its president, Charles T. Barney, became connected to a failed attempt to corner the stock of United Copper Company. When the scheme collapsed, depositors began withdrawing money from Knickerbocker.

The run forced the company to suspend operations on October 22, 1907. Panic spread to other trust companies and banks, causing withdrawals, falling share prices, and a severe shortage of available credit. The crisis became a major argument for creating a central banking institution in the United States.

The panic was eventually contained through emergency cooperation led by financier J. P. Morgan and other bankers. The Federal Reserve was later created in 1913, partly in response to weaknesses revealed by the crisis. Knickerbocker Trust’s failure was an important trigger, but it was not the only cause of the panic.