The 1907 U.S. crisis triggered by failed speculation in United Copper was the Panic of 1907.
Speculators attempted to corner United Copper’s stock, but the plan collapsed. Depositors then rushed to withdraw funds from banks and trust companies connected to the speculators. The panic spread through financial markets, and the New York Stock Exchange experienced a sharp fall in prices and a shortage of available credit.
The crisis became especially severe after the failure of the Knickerbocker Trust Company in October 1907. J. P. Morgan organized private support for solvent institutions and helped prevent a wider collapse when no U.S. central bank existed.
The Panic of 1907 helped persuade American lawmakers that the country needed a lender of last resort. The Federal Reserve System was created in 1913. The episode is distinct from the 1893 panic and the 1929 Wall Street Crash.