Which U.S. market crash began after the 1907 failure of Knickerbocker Trust Company?

The U.S. market crash associated with the 1907 failure of Knickerbocker Trust Company was the Panic of 1907.

Knickerbocker Trust Company, then one of New York’s largest trust companies, suffered a run and suspended operations on October 22, 1907. Its failure intensified a broader loss of confidence in banks, trusts, and financial institutions.

Banker J. P. Morgan organized private-sector support, helping prevent the panic from becoming an even wider collapse. The crisis exposed the absence of a U.S. central bank capable of acting as a lender of last resort.

The panic helped build political support for monetary reform. The Federal Reserve System was created in 1913, five years after the crisis. The Panic of 1907 is distinct from the later 1929 crash: it centered heavily on runs and a fragile trust-company system rather than the mass margin speculation associated with the end of the 1920s boom.