The 1907 U.S. financial panic was called the Panic of 1907.
The crisis began in October 1907 after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme failed, depositors rushed to withdraw money from banks connected to the speculators. The withdrawals spread to trust companies, which were less regulated than commercial banks.
J. Pierpont Morgan organized private support for endangered institutions and persuaded other financiers to provide liquidity. The New York Stock Exchange also faced severe pressure as lending rates rose and confidence weakened. Morgan’s intervention helped prevent a broader banking collapse.
The panic exposed weaknesses in the U.S. financial system, which lacked a central bank able to act as a lender of last resort. Congress later created the National Monetary Commission, and the Federal Reserve System was established in 1913. The Panic of 1907 is sometimes confused with the Panic of 1893, another major U.S. banking crisis.