The U.S. bank panic in 1907 that led to the creation of the Federal Reserve System six years later was the Panic of 1907.
The crisis began after an unsuccessful attempt to corner the stock of United Copper Company caused a run on Knickerbocker Trust Company in New York. Depositors withdrew money from other trust companies, and confidence weakened across financial markets. The New York Stock Exchange also suffered a sharp decline.
Financier J. P. Morgan organized private rescue efforts, gathering bankers and arranging funds to prevent additional failures. His intervention showed how dependent the United States was on a single private individual during a national liquidity crisis.
Congress responded by creating the National Monetary Commission, whose work helped lead to the Federal Reserve Act of 1913. The Federal Reserve opened in 1914. The panic therefore did not create the central bank immediately, but it was a major political reason for establishing one.