The 1907 U.S. financial crisis caused by bank runs and collapsing confidence is called the Panic of 1907.
The crisis intensified in October 1907 after an attempt to corner the stock of United Copper Company failed. Depositors then withdrew funds from banks and trust companies connected to the scheme. The Knickerbocker Trust Company, one of New York’s largest trust companies, suspended operations on October 22.
J. P. Morgan organized emergency lending and persuaded other financiers to support threatened institutions. His intervention helped stop the panic, but the episode exposed weaknesses in the U.S. banking system. The federal government later created the National Monetary Commission, contributing to the establishment of the Federal Reserve System in 1913.
The Panic of 1907 is sometimes called the Bankers’ Panic. It should not be confused with the Panic of 1893, another severe U.S. financial crisis that occurred fourteen years earlier.