The Banking Crisis of 1907 was a financial panic that led to a severe liquidity shortage in the United States. Triggered by the collapse of several banks and a failed attempt to corner the copper market, the crisis caused widespread bank runs, where depositors rushed to withdraw their money. This resulted in the failure of numerous banks and businesses, leading to a significant economic downturn. In response to the crisis, J.P. Morgan, a prominent banker, organized a coalition of banks to provide emergency funds and stabilize the financial system. The crisis highlighted the need for banking reform, ultimately leading to the establishment of the Federal Reserve System in 1913 to prevent future financial panics.