The 1907 U.S. stock-market panic was 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 scheme failed, depositors withdrew money from banks connected to the speculators. The withdrawals spread through trust companies, which were less regulated than commercial banks.
J.P. Morgan helped coordinate emergency private-sector support. He and other financiers supplied funds, arranged a rescue of the Trust Company of America, and helped stabilize the banking system. The New York Stock Exchange also experienced a sharp fall, while interest rates and fears about liquidity rose.
The panic became an important argument for creating a permanent U.S. central bank. In response to the weaknesses exposed in 1907, Congress established the National Monetary Commission; the Federal Reserve System followed in 1913. A common mix-up is treating the panic as a single-day crash: it was a broader banking and market crisis lasting several weeks.