The 1907 U.S. stock-market panic worsened after the collapse of the United Copper Company scheme and became known as the Panic of 1907.
The failed scheme was associated with speculator F. Augustus Heinze, whose attempt to corner United Copper shares collapsed in October 1907. Depositors then rushed to withdraw money from banks connected with Heinze and his associates.
The panic spread through trust companies and the New York financial system. With no U.S. central bank yet operating, financier J. P. Morgan organized emergency support and persuaded banks to provide liquidity.
The crisis helped convince American policymakers that the country needed a formal lender of last resort. The Federal Reserve System was created in 1913. The Panic of 1907 is sometimes confused with the longer depressions following the Panics of 1873 and 1893.