J. P. Morgan helped calm the Panic of 1907 by organizing emergency private-sector support.
During the panic, a failed attempt to corner shares of the United Copper Company helped trigger runs on banks and trust companies. The crisis spread because the United States lacked a modern central bank able to provide emergency liquidity to financial institutions.
J. P. Morgan convened bankers in New York and used his influence, money, and institutional relationships to arrange loans and support for vulnerable firms. His efforts helped prevent a broader collapse, although the intervention did not instantly end the panic.
The episode strengthened arguments for creating a central bank. The Federal Reserve System was established in 1913. Morgan’s role is sometimes simplified into the claim that he personally rescued the entire economy; in reality, many bankers, institutions, and government officials participated.