Which U.S. bank failure intensified the Panic of 1907 after a failed attempt to corner United Copper?

The Knickerbocker Trust Company failure intensified the Panic of 1907 after a failed attempt to corner United Copper.

In October 1907, speculator F. Augustus Heinze and his associates attempted to manipulate the shares of United Copper Company. The scheme failed, and confidence in connected financial institutions collapsed. Depositors then rushed to withdraw money from the Knickerbocker Trust Company, one of New York’s largest trust companies. Its suspension on October 22 accelerated the panic.

The crisis spread through banks, trust companies, and the stock market. J. Pierpont Morgan organized private support and persuaded other financiers and institutions to provide liquidity. The episode helped convince Americans that the country needed a more formal emergency monetary authority. The Federal Reserve System was created in 1913, although the Panic of 1907 was only one factor behind that reform.