Which trust company failed during the Panic of 1907, helping trigger a banking crisis in the United States?

The Knickerbocker Trust Company failed during the Panic of 1907, helping trigger a banking crisis in the United States.

Knickerbocker Trust was one of New York's largest trust companies. Its president, Charles T. Barney, was linked to a failed attempt to corner the stock of United Copper Company. When the scheme collapsed in October 1907, depositors rushed to withdraw money from Knickerbocker, and the institution suspended operations on October 22.

The failure intensified a broader run on banks and trust companies. The crisis threatened the New York Stock Exchange and spread confidence problems through the financial system. Banker J. Pierpont Morgan organized emergency support, including a large pool of private funds, to prevent a wider collapse.

The panic helped persuade Americans that the country needed a central banking system. Congress created the National Monetary Commission, and its work contributed to the Federal Reserve Act of 1913. Knickerbocker Trust is therefore associated with both the panic and the institutional reforms that followed.