The 1907 U.S. financial panic was known as the Panic of 1907.
The crisis began after an unsuccessful attempt to corner the stock of United Copper Company. When the plan failed, depositors withdrew money from institutions connected with the speculators, spreading distrust through New York’s banking system. The Knickerbocker Trust Company failed, intensifying the panic.
J. P. Morgan coordinated a private rescue. He persuaded bankers to provide funds, examined the finances of troubled institutions, and helped stabilize the system. The episode demonstrated how dependent the United States was on individual financiers during a banking emergency.
The Panic of 1907 helped build political support for a permanent central bank. That process eventually led to the creation of the Federal Reserve System in 1913. The panic is distinct from the earlier Panic of 1893 and the Panic of 1873, both of which also involved severe banking and market distress.