The 1907 U.S. financial crisis, marked by a run on Knickerbocker Trust, was called the Panic of 1907.
The crisis intensified in October 1907 after an unsuccessful attempt to corner shares of United Copper. Depositors then rushed to withdraw money from Knickerbocker Trust Company, one of New York’s largest trust companies. Its failure damaged confidence in other financial institutions.
J. P. Morgan organized private support for banks and trust companies and helped stabilize the system. The episode exposed weaknesses in the U.S. banking structure, which lacked a central bank capable of acting as a lender of last resort.
The Panic of 1907 is often linked to the creation of the Federal Reserve System in 1913. It is different from the Panic of 1893 and the later Wall Street Crash of 1929, although all three involved severe financial stress.