During the 1907 Panic, J. P. Morgan organized a rescue of the U.S. banking system and stock market.
The panic began in October 1907 after a failed attempt to corner shares of United Copper Company damaged confidence in several financial institutions. Depositors withdrew funds, and the resulting runs spread through trust companies and banks, especially in New York.
J. P. Morgan used his reputation, private funds, and influence to coordinate emergency lending. He gathered bankers in his library, helped assess which institutions could survive, and supported measures to provide liquidity. The New York Stock Exchange also faced a severe shortage of funds for settlement.
Morgan did not single-handedly end every part of the crisis, but his intervention helped prevent a wider collapse. The panic exposed weaknesses in the U.S. financial system and contributed to creation of the Federal Reserve in 1913.