J. P. Morgan helped calm the Panic of 1907 by organizing emergency support for troubled banks.
The panic began after a failed attempt to corner the stock of United Copper Company triggered runs on trust companies in New York. Trust companies performed many banking functions but held fewer cash reserves than commercial banks, making them vulnerable when depositors demanded withdrawals.
Morgan used his library and financial offices to examine institutions, coordinate bankers, and decide which firms should receive support. His intervention helped prevent the crisis from becoming an even broader collapse, although the emergency response depended heavily on private authority.
The Panic of 1907 influenced the creation of the Federal Reserve System in 1913. Morgan did not single-handedly solve every problem, and the U.S. Treasury also supplied funds; the important point is that his coordination provided a lender-like backstop before a central bank existed.