The Panic of 1907 was the U.S. financial crisis during which J. P. Morgan organized emergency support to stabilize banks and markets.
The panic began after an unsuccessful attempt to corner the stock of United Copper Company. Depositors then withdrew funds from linked trust companies, especially the Knickerbocker Trust Company in New York. Fear spread through the financial system, while the country lacked a modern central bank capable of quickly supplying emergency liquidity.
J. P. Morgan gathered bankers and used his influence and resources to arrange loans and commitments. His intervention helped prevent a broader collapse, but the episode also exposed weaknesses in the U.S. banking system. The crisis contributed to the creation of the Federal Reserve System in 1913. It is sometimes confused with the Panic of 1893, another severe but earlier U.S. financial crisis.