J. P. Morgan organized the private rescue effort during the Panic of 1907, a major U.S. stock-market crash.
The panic began in October 1907 after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme failed, depositors withdrew money from trust companies, and fear spread through financial markets. The crisis became especially severe in New York.
Morgan used his reputation, wealth, and banking connections to coordinate emergency lending. He gathered bank leaders in his library and helped decide which institutions could receive support. His intervention helped stabilize the banking system and prevent a broader collapse.
The panic also exposed weaknesses in the United States financial system. The country had no central bank at the time, and the Federal Reserve was created in 1913 partly in response to lessons from the crisis. Morgan did not act as a government official; he operated as a powerful private banker.