The 1907 US banking crisis that caused a sharp stock-market sell-off was the Panic of 1907.
The panic began after an unsuccessful attempt to corner the shares of United Copper Company. When depositors and investors lost confidence, runs spread through trust companies and banks, especially in New York City. The crisis damaged credit markets and pushed stock prices sharply lower.
Financier J. P. Morgan organized private-sector support for threatened institutions and helped stabilize the banking system. The episode exposed the weakness of relying on private financiers during a nationwide panic. The United States had no central bank at the time; the Federal Reserve System was created in 1913, partly in response to lessons from the crisis.
The Panic of 1907 is distinct from the Panic of 1893 and the Wall Street Crash of 1929. It was a banking and liquidity crisis as well as a stock-market decline, with trust companies playing a particularly important role.