The 1907 U.S. stock-market panic was called the Panic of 1907.
The crisis began after a failed attempt to corner the shares of United Copper Company. The failure damaged confidence in trust companies and banks, while withdrawals and a shortage of available credit spread through New York’s financial system. The New York Stock Exchange fell sharply, and the panic threatened wider economic disruption.
Financier J. Pierpont Morgan helped organize private rescues, persuading banks and trust companies to provide emergency support. His intervention showed how heavily the U.S. system depended on a single private financier during a crisis.
The panic helped build political support for a formal lender of last resort. The Federal Reserve System was created in 1913, although the Panic of 1907 was not its only cause. It is sometimes confused with the Panic of 1893, another severe U.S. financial crisis.