J. P. Morgan became famous for organizing the rescue of the U.S. banking system during the Panic of 1907.
The crisis began after a failed attempt to corner the stock of United Copper Company triggered runs on trust companies and banks. The United States had no central bank at the time, so private financiers and institutions had to coordinate emergency lending. Morgan used his influence, money, and banking relationships to help determine which institutions could be supported and to assemble funds that restored confidence.
The rescue was not a simple one-person bailout. The Treasury Department, major banks, clearinghouses, and other financiers all played important roles. Morgan’s leadership nevertheless became the defining story because he convened bankers in his library and pressed them toward a collective solution.
The Panic exposed weaknesses in the American financial system and helped inspire the creation of the Federal Reserve in 1913. Morgan’s role is sometimes overstated as personally saving every bank, but his coordination was central to containing the emergency.