The Panic of 1907 may have been the deepest financial crisis that the U.S. faced except for the Crash of 1929. There was no central bank at that time, no bank of last resort, and for that reason the financial system completely stopped for a few days. The existing clearing system in New York City had to deal with numerous bank runs, and while banks were still clearing transactions, some of the trust companies were having more trouble. Trust companies were not part of the bank clearing system. The ...
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