The 1907 United States banking crisis that helped lead to the Federal Reserve was the Panic of 1907.
The panic intensified after an unsuccessful attempt in October 1907 to corner the stock of United Copper Company. When the scheme failed, depositors rushed to withdraw money from banks and trust companies connected to the speculators.
The crisis became especially dangerous because the United States had no central bank capable of supplying emergency liquidity. Financier J. P. Morgan organized private-sector support, including a rescue effort at his New York library, helping prevent a wider collapse.
The panic prompted the National Monetary Commission to study central banking systems abroad. Its work contributed to the Federal Reserve Act of 1913, which created the Federal Reserve System. The Fed therefore followed the panic rather than existing during it.