The 1907 U.S. financial crisis was known as the Panic of 1907. It began after a failed attempt to corner the stock of United Copper Company triggered a run on trust companies and spread anxiety through financial markets.
The crisis was severe because the United States lacked a modern central bank able to supply emergency liquidity. Depositors withdrew funds, banks and trusts restricted payments, and the New York Stock Exchange experienced sharp stress. The panic threatened broader economic disruption.
Financier J. P. Morgan organized private-sector support, using his influence and funds to stabilize institutions and reassure markets. The episode convinced many policymakers that relying on one powerful banker was not a dependable national system for crisis management.
The Aldrich–Vreeland Act of 1908 created emergency currency provisions and established a National Monetary Commission. Those developments helped lead to the Federal Reserve Act of 1913. The Federal Reserve was not created immediately during the panic itself, but the crisis was a major political catalyst.