The 1907 US financial crisis that helped inspire the Federal Reserve is called the Panic of 1907.
The panic began after a failed attempt to corner the stock of United Copper Company. The failure damaged confidence in trust companies, which were important financial institutions but lacked the same central support available to national banks. Withdrawals spread, and the Knickerbocker Trust Company collapsed.
J. Pierpont Morgan organized private support for banks and brokerages, using his reputation and financial resources to stabilize the system. His intervention showed how dependent the United States was on a powerful private banker during a crisis.
The Panic of 1907 strengthened arguments for a central bank capable of providing emergency liquidity. Congress created the National Monetary Commission, and its work contributed to the Federal Reserve Act of 1913. The Federal Reserve was therefore not created during the panic itself, but the crisis was a major reason for its establishment.