The Panic of 1907 began in the United States in 1907.
The crisis intensified in October after an unsuccessful attempt to corner the stock of United Copper Company. Depositors then ran on trust companies, especially the Knickerbocker Trust Company in New York, whose failure helped spread fear through the financial system. Banks and clearing houses restricted credit as confidence deteriorated.
J. P. Morgan organized private-sector support, persuaded banks to provide liquidity, and helped stabilize the system. The panic exposed the weaknesses of a financial structure that lacked a permanent central bank capable of acting as a lender of last resort.
The United States responded by creating the National Monetary Commission, whose recommendations influenced the Federal Reserve Act of 1913. The panic is sometimes confused with the 1869 gold panic or the 1893 depression, but its defining bank runs and trust-company failures occurred in 1907.