The 1907 U.S. financial crisis was called the Panic of 1907.
The panic began after a failed attempt to corner the stock of United Copper Company, but it spread through trust companies and banks when depositors demanded cash. The Knickerbocker Trust Company in New York failed, intensifying withdrawals and fear. The United States had no permanent central bank at the time, so private financiers played an unusually large role in stabilizing the system.
J. P. Morgan organized emergency lending and persuaded banks to cooperate, helping stop the run. The crisis convinced many policymakers that the country needed a lender of last resort. The Federal Reserve Act of 1913 created the Federal Reserve System. The panic is sometimes confused with the earlier Panic of 1893, another severe U.S. financial crisis with different immediate causes.