What was the 1907 U.S. financial crisis commonly called?

The 1907 U.S. financial crisis was commonly called the Panic of 1907. It began after a failed attempt to corner the stock of United Copper Company, which triggered runs on banks and trust companies connected to the speculators. The crisis spread through New York’s financial system and threatened the broader economy.

J. Pierpont Morgan organized private bankers to provide emergency financing and prevent the collapse of several institutions. The New York Stock Exchange also faced a severe shortage of available credit. Morgan’s intervention helped stabilize the system, but the episode demonstrated how dependent the United States was on private financiers during emergencies.

The panic contributed directly to the creation of the Federal Reserve System in 1913. It is sometimes confused with the Panic of 1893, another major U.S. financial crisis, but the 1907 episode occurred fourteen years later and had a different immediate trigger.