Which US trust company failed in October 1907 during the panic that prompted banking reform?

The Knickerbocker Trust Company failed in October 1907 during the Panic of 1907.

The company suspended operations on October 22, 1907, after depositors withdrew money amid fears about its involvement in a failed attempt to corner the stock of United Copper. Knickerbocker had been one of New York’s largest trust companies, so its collapse intensified a widening loss of confidence in banks and other financial institutions.

The panic spread through runs, falling share prices, and shortages of readily available credit. Trust companies were especially vulnerable because they held fewer cash reserves than commercial banks and were less integrated into the formal clearing system. The crisis threatened the New York Stock Exchange and required emergency private support.

Financier J. P. Morgan organized a group of bankers who supplied funds and helped stabilize key institutions. The panic ultimately strengthened arguments for a central bank, leading to the creation of the Federal Reserve System in 1913. Knickerbocker’s failure was a major early event in the panic, but the crisis had broader causes involving speculation, fragile banking structures, and limited emergency liquidity.