The 1907 U.S. financial panic caused the New York Stock Exchange to fall nearly 50% from its annual high.
The Panic of 1907 began after a failed attempt to corner the stock of United Copper Company damaged confidence in trust companies and banks. Runs on financial institutions spread, especially after the Knickerbocker Trust Company failed in October.
J. P. Morgan organized private support for threatened institutions and helped coordinate emergency measures when the United States lacked a modern central bank. The crisis intensified a national debate about financial stability and the need for institutional reform.
The panic contributed to the creation of the Federal Reserve System in 1913. It is distinct from the 1901 Northern Pacific corner and from the later 1929 Wall Street Crash, although all involved severe market stress.