What was the name of the United States financial crisis that began in 1907?

The United States financial crisis that began in 1907 was the Panic of 1907.

The panic started after an unsuccessful attempt to corner the shares of United Copper Company. When the scheme collapsed, depositors rushed to withdraw funds from related banks and trust companies. The crisis intensified after the Knickerbocker Trust Company, then one of New York’s largest trust companies, suspended operations on October 22, 1907.

J. Pierpont Morgan organized private support for banks and trusts, helping prevent a wider collapse. The New York Stock Exchange also experienced severe pressure, while short-term credit became difficult to obtain. The episode demonstrated how dependent the American financial system was on private intervention because the United States had no modern central bank.

The Panic of 1907 directly influenced the creation of the Federal Reserve System in 1913. It is sometimes called the Knickerbocker Crisis, but that label emphasizes one institution rather than the entire national financial panic.