Which U.S. market event of 1907 led to J.P. Morgan organizing a private rescue?

The Panic of 1907 led J.P. Morgan to organize a private rescue of the U.S. financial system.

The panic began after an unsuccessful attempt to corner the stock of United Copper Company. Depositors then withdrew funds from institutions connected to the speculators, and fear spread to trust companies and banks. The New York Stock Exchange fell sharply as confidence deteriorated.

J.P. Morgan convened bankers, examined institutions’ finances, and used his influence and money to coordinate emergency support. The rescue helped prevent a broader collapse, but it also exposed how dependent the United States was on private financiers because it lacked a modern central bank.

The crisis contributed to the creation of the Federal Reserve System in 1913. The Panic of 1907 is therefore important not only as a market crash, but also as a direct part of the institutional history behind U.S. central banking.