The 1907 U.S. financial panic eased after J. P. Morgan organized a private rescue of banks, an episode called the Panic of 1907.
The crisis began in October 1907 after an unsuccessful attempt to corner the stock of United Copper Company. When the speculation failed, depositors withdrew money from trust companies, especially Knickerbocker Trust Company in New York. The withdrawals spread fear through banks and markets.
J. P. Morgan gathered bankers in his library and helped arrange emergency loans and guarantees. His intervention helped prevent a wider collapse, although the stock market and economy suffered a sharp downturn. The episode exposed weaknesses in the U.S. financial system.
A common mix-up is confusing this panic with the Panic of 1893, another severe American banking crisis. The 1907 episode helped build support for the Federal Reserve, which Congress created in 1913.