The 1907 U.S. financial crisis was called the Panic of 1907.
The panic began after an unsuccessful attempt to corner the stock of United Copper Company caused a run on trust companies in New York. The Knickerbocker Trust Company failed on 22 October 1907, intensifying withdrawals and shaking confidence in banks and securities markets. The New York Stock Exchange fell sharply during the crisis.
Financier J. P. Morgan helped organize private support for banks and trust companies, including a rescue effort that prevented the crisis from becoming even more destructive. The episode showed how dependent the United States was on emergency action by private financiers because it had no central bank.
Congress responded by creating the National Monetary Commission. Its work contributed to the Federal Reserve Act of 1913, which established the Federal Reserve System. The Fed therefore did not exist during the Panic of 1907; it was created afterward partly in response to the panic.