The 1907 U.S. stock-market crisis was called the Panic of 1907.
The panic began after a failed attempt to corner the stock of United Copper Company. The failure damaged confidence in trust companies, especially the Knickerbocker Trust Company in New York, and withdrawals spread through the financial system.
J. P. Morgan helped organize private support for banks and trusts, while the Treasury supplied funds. The crisis exposed the weakness of the United States’ banking structure, which lacked a permanent central bank capable of acting as a lender of last resort.
Congress created the National Monetary Commission after the panic. Its work contributed to the Federal Reserve Act of 1913 and the Federal Reserve System’s launch in 1914. The Federal Reserve was therefore created after, not during, the Panic of 1907.