J. P. Morgan helped stop the Panic of 1907 by organizing emergency support for banks.
The panic began after a failed attempt to corner the stock of United Copper Company triggered runs on trust companies. Confidence weakened across New York's financial system, and depositors sought cash from institutions that lacked sufficient reserves.
Morgan brought bank leaders and Treasury officials together, examined institutions' assets, and used his influence and money to coordinate loans and guarantees. His library became a meeting place during the crisis, symbolizing the private rescue effort.
The episode demonstrated the danger of leaving the United States without a permanent central bank able to act as lender of last resort. The Federal Reserve System was created in 1913, although its establishment also reflected broader monetary debates.