The 1907 U.S. financial panic that triggered a major New York stock-market collapse was the Panic of 1907.
The crisis began after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme failed, depositors rushed to withdraw funds from banks and trust companies connected to the speculators. The panic spread through New York’s financial system and caused a sharp fall in share prices.
J. Pierpont Morgan played a central role in organizing private support for threatened institutions. He and other financiers pledged funds, examined bank positions, and helped prevent a broader collapse. The episode demonstrated how heavily the United States depended on private financiers because it lacked a modern central bank.
The Panic of 1907 helped build political support for the Federal Reserve System. Congress created the Federal Reserve in 1913. The panic is therefore remembered both as a severe market crisis and as an important cause of U.S. banking reform.