The U.S. financial panic eased after J. P. Morgan organized emergency support 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 in New York. The Knickerbocker Trust Company collapsed on October 22, intensifying fear across the financial system.
J. P. Morgan gathered bankers, examined institutions, and committed funds to keep solvent banks and trust companies operating. His private intervention helped stop the panic, but it also showed how dependent the United States was on one powerful financier during a systemic emergency.
The Panic of 1907 contributed to the creation of the Federal Reserve System in 1913. The Federal Reserve was designed partly to provide a more permanent mechanism for supplying liquidity during financial crises.