Which U.S. trust company failed during the Panic of 1907, helping trigger the Wall Street crisis?

The Knickerbocker Trust Company failed during the Panic of 1907, helping trigger the Wall Street crisis.

The company suspended operations on October 22, 1907, after a failed attempt to corner the stock of United Copper. Rumors about its financial condition led depositors to withdraw money rapidly. Because Knickerbocker was one of New York's largest trust companies, its collapse intensified fears about other institutions and caused widespread withdrawals.

The panic spread through banks, brokerages, and the stock market. The New York Stock Exchange fell sharply, and credit became difficult to obtain. J. Pierpont Morgan organized private support for threatened institutions and persuaded banks to provide emergency liquidity. His intervention helped stabilize the system, but it also demonstrated how dependent the United States was on individual financiers.

The crisis contributed to the creation of the Federal Reserve System in 1913. Knickerbocker Trust is sometimes confused with the unrelated Knickerbocker name used by banks and businesses in other periods.