Which trust company’s failure on 22 October 1907 intensified the U.S. Panic of 1907?

The Knickerbocker Trust Company’s failure on 22 October 1907 intensified the U.S. Panic of 1907.

The company was one of New York’s largest trust institutions. After a failed attempt to corner the stock of United Copper, confidence in its leadership collapsed. A run followed, and the Knickerbocker Trust suspended operations on 22 October.

The suspension helped spread withdrawals and fear through other banks and trust companies. Private financier J. P. Morgan organized emergency support, while clearinghouses issued loan certificates to ease shortages of cash. The crisis exposed the weaknesses of a banking system without a permanent central bank.

The panic ultimately helped create the Federal Reserve System. The Aldrich–Vreeland Act of 1908 introduced emergency currency measures, and the Federal Reserve Act of 1913 established the Federal Reserve as the United States’ central banking system.