J. P. Morgan was the leading private rescuer of banks and trusts during the 1907 U.S. financial panic.
J. P. Morgan used his influence, money, and financial network to help stabilize the banking system after a failed attempt to corner the stock of United Copper Company triggered a run on related institutions. Depositors withdrew funds, and trust companies faced severe liquidity problems.
Morgan convened bankers in New York and helped organize emergency loans and other measures. He also pressured institutions to cooperate, working from his library during the crisis. The episode demonstrated how dependent the United States was on private coordination because it had no central bank at the time.
The Panic of 1907 helped build political support for monetary reform. The Federal Reserve System was created in 1913, although its establishment followed several years of investigation and debate rather than occurring immediately after the panic.