The 1792 financial crisis that led to the creation of the New York Stock & Exchange Board was the Panic of 1792.
The crisis developed in March and April 1792 after rapid speculation in securities, especially securities associated with the newly established Bank of the United States. William Duer and Alexander Macomb borrowed heavily to buy government bonds and bank shares, helping push prices upward. When they could not meet their obligations, selling spread through New York and Philadelphia.
The panic was serious enough to threaten the young United States financial system. Treasury Secretary Alexander Hamilton responded by arranging government purchases of securities and encouraging banks to continue lending. The intervention helped restore confidence, although it also demonstrated the volatility of the new securities market.
The New York Stock & Exchange Board was formed in 1817 and later became the New York Stock Exchange. It was not created immediately during the panic, a detail sometimes misstated in simplified accounts; the crisis instead helped motivate more organized securities trading.