Early tremors in March 1907 foreshadowed the full-blown Panic of 1907, a banking crisis triggered by a failed attempt to corner copper stock that spiraled into runs on trust companies. The crisis, ultimately quelled by financier J.P. Morgan personally orchestrating a bailout, exposed the fragility of a banking system with no central bank, directly spurring creation of the Federal Reserve in 1913.
Early tremors in March 1907 foreshadowed the full-blown Panic of 1907, a banking crisis triggered by a failed attempt to corner copper stock that spiraled into runs on trust companies. The crisis, ultimately quelled by financier J.P. Morgan personally orchestrating a bailout, exposed the fragility of a banking system with no central bank, directly spurring creation of the Federal Reserve in 1913.