J. P. Morgan organized the private rescue that helped stop the Panic of 1907 in the United States.
During the panic, runs affected trust companies and banks, while the New York Stock Exchange faced severe pressure. J. Pierpont Morgan gathered bankers in New York and used his influence and financial resources to coordinate emergency lending and purchases of troubled assets. His intervention helped prevent a wider collapse of the banking system.
The crisis became especially severe after a failed attempt to corner shares of United Copper Company damaged confidence in Knickerbocker Trust. When Knickerbocker suspended operations, depositors rushed to withdraw funds from other institutions. The Treasury also supplied liquidity, but the banking community’s emergency coordination was central.
The Panic of 1907 exposed the weakness of a U.S. financial system without a central bank able to act as lender of last resort. Its aftermath contributed to the creation of the Federal Reserve System in 1913. Morgan’s role was crucial, but the rescue was a collective effort rather than the work of one individual alone.