Donald P. Morgan and James Narron — The Final Crisis Chronicle: The Panic of 1907 and the Birth of the Fed

History of economics and finance.

The panic of 1907 was among the most severe we’ve covered in our series and also the most transformative, as it led to the creation of the Federal Reserve System. Also known as the “Knickerbocker Crisis,” the panic of 1907 shares features with the 2007-08 crisis, including “shadow banks” in the form high-flying, less-regulated trusts operating beyond the safety net of the time, and a pivotal “Lehman moment” when Knickerbocker Trust, the second-largest trust in the country, was allowed to fail after J.P. Morgan refused to save it.…

FRBNY — Liberty Street Economics
The Final Crisis Chronicle: The Panic of 1907 and the Birth of the Fed

Donald P. Morgan, assistant vice president in the Federal Reserve Bank of New York’s Research and Statistics Group and James Narron, First Vice President and Chief Operating Officer of the Federal Reserve Bank of Philadelphia