Panic of 1907
About Panic of 1907
A financial crisis triggered by a failed attempt to corner the copper market. The panic caused bank runs across the country. J P Morgan personally organized a rescue, pooling money from wealthy bankers to save failing institutions. The crisis revealed the need for a central bank. The Federal Reserve System was created in 1913 in direct response to the Panic of 1907. Without Morgans intervention, the financial system might have collapsed entirely. The panic is a key example of how a single individuals actions can determine financial outcomes in an unregulated system.
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