Which trust company’s failure helped trigger the Panic of 1907 in the United States?

The failure of the Knickerbocker Trust Company helped trigger the Panic of 1907 in the United States.

Knickerbocker Trust was one of New York’s largest trust companies. In October 1907, its president, Charles T. Barney, became associated with a failed attempt to corner the stock of United Copper Company. Depositors then rushed to withdraw funds, and the company suspended operations on October 22.

The run spread to other banks and trust companies, producing a severe financial panic. Trust companies were less tightly regulated than national banks and held fewer immediately available reserves, making confidence especially important.

Financier J. P. Morgan organized emergency support with other bankers, helping stabilize the system. The panic later contributed to the creation of the Federal Reserve System in 1913. Knickerbocker’s collapse was a major trigger, not the sole underlying cause.