The 1907 U.S. financial crisis was called the Panic of 1907, a severe banking and stock-market crisis centered in New York.
The panic began after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme failed, depositors withdrew money from associated trust companies. The resulting runs spread through the financial system, while the New York Stock Exchange suffered a sharp decline and credit became scarce.
Banker J. P. Morgan organized private support for troubled institutions and helped prevent a wider collapse. The episode exposed the weakness of relying on private financiers for emergency liquidity. In response, the United States created the National Monetary Commission, whose work contributed to the Federal Reserve Act of 1913.
The Panic of 1907 is distinct from the 1929 crash: it preceded the Federal Reserve and was primarily a banking and liquidity crisis rather than the beginning of the Great Depression.