J. P. Morgan organized private support for New York banks during the Panic of 1907.
Morgan convened bankers, examined institutions under pressure, and used his influence and personal funds to help stabilize the financial system. The crisis intensified after a failed attempt to corner the stock of United Copper Company caused runs on trust companies, especially the Knickerbocker Trust Company.
The panic demonstrated how dependent the United States was on individual financiers because it had no modern central bank. Morgan's intervention helped prevent a broader collapse, but it also highlighted the risks of relying on private rescue efforts. The crisis contributed to the creation of the National Monetary Commission and ultimately the Federal Reserve System in 1913. The Panic of 1907 is distinct from the Panic of 1873, which began amid the failure of Jay Cooke & Company.