The U.S. financial panic eased by J. P. Morgan's emergency rescue operations in 1907 was the Panic of 1907.
The crisis began after a failed attempt to corner the stock of United Copper Company. Depositors then rushed to withdraw funds from trust companies, especially the Knickerbocker Trust Company in New York, producing a wider run on financial institutions.
J. P. Morgan organized private-sector support, negotiated loans, and helped persuade banks to provide liquidity. His intervention was widely viewed as essential because the United States had no modern central bank at the time.
The panic influenced the creation of the Federal Reserve System. Congress passed the Federal Reserve Act in 1913, establishing a central banking structure intended to provide a more reliable source of emergency liquidity.