J. P. Morgan organized private support for banks during the Panic of 1907 in the United States.
The panic began after an unsuccessful attempt to corner the stock of United Copper Company triggered a run on associated trust companies. Depositors demanded cash, and fear spread through New York’s financial system. At the time, the United States had no central bank capable of acting as a modern lender of last resort.
Morgan used his influence, money, and library as a meeting place while examining the finances of troubled institutions. He persuaded banks and wealthy investors to provide emergency funds and helped coordinate rescues, including support for the New York City Treasury.
The crisis encouraged reform. The Aldrich–Vreeland Act of 1908 created emergency currency provisions, and the Federal Reserve System was established in 1913. Morgan’s role was important, but the rescue reflected cooperation among many financial institutions and government officials.