J. P. Morgan became the central figure in calming the Panic of 1907 in the United States.
The panic began after a failed attempt to corner the stock of United Copper Company. The failure spread distrust through trust companies and banks, producing withdrawals and a severe liquidity crisis. With no modern central bank available to act as a lender of last resort, Morgan used his influence and personal funds to organize emergency support.
Morgan and other financiers examined institutions, arranged loans, and helped prevent the collapse of the major New York brokerage Moore & Schley. His library became a meeting place during the crisis, and he reportedly kept bankers working until solutions were found.
The panic exposed weaknesses in America’s financial system. It helped build political support for the Federal Reserve System, which Congress created in 1913. Morgan was crucial to the rescue, but the episode also showed why relying on one private banker was unstable.