The 1907 U.S. panic that was halted after J. P. Morgan organized emergency private financing was the Panic of 1907.
The crisis began after an unsuccessful attempt to corner the stock of United Copper Company. The failure damaged confidence in trust companies, particularly the Knickerbocker Trust Company in New York. Depositors rushed to withdraw funds, while banks and businesses struggled to obtain usable cash.
J. P. Morgan convened bankers, examined institutions’ finances, and helped coordinate loans and purchases of securities. The rescue reduced the immediate pressure, but the episode exposed weaknesses in the U.S. banking system. It contributed to support for creating the Federal Reserve System, which began operations in 1913. The Panic of 1907 was therefore a stock-market and banking crisis, not simply a fall in one index.