Marquette Bank Minneapolis
Encyclopedia
Marquette National Bank was chartered in 1920 and was named for Marquette Avenue, the financial center of Minneapolis, Minnesota
.
The bank was eventually acquired by Carl Pohlad
and had $350 million in assets in 1982 when it acquired the failing Farmers and Mechanics Savings Bank of Minneapolis (F&M) and had nearly $1 billion of assets prior to sale which was arranged by the Federal Deposit Insurance Corporation
. After the acquisition, the name was changed to Marquette Bank Minneapolis and it had the fourth most assets in the state. The bank was owned by the Bank Shares, Inc. holding company which was controlled by the Pohlad family and which owned several other banks in the Minneapolis area using the Marquette name.
Bank Shares was sold to First Bank (now US Bank) in late 1991 with the deal finally closing in 1993.
rate litigation with the First National Bank of Omaha
which resulted in an important US Supreme Court ruling
regulating the banking industry. Marquette brought suit against First National claiming the interest rate charged Minnesota customers using First National credit card services (VISA) though legal in Nebraska, exceeded the interest rate allowed under Minnesota state law. Marquette was also issuing cards but did not exceed the interest rate permitted by the law in the cardholder's State. The Court ruled in 1978 that a Federally chartered bank like First National could offer credit card services nationwide and the maximum interest rate to cardholders was that allowed by the State the bank was located in and not the customer's State. This ruling prompted some US States (South Dakota, Delaware, Utah, Virginia, New Hampshire) to repeal their maximum interest rate laws. Banks offering credit card services quickly established offices and cardholder services in those States to take advantage of the "no cap" interest rates allowed by the State.
Minneapolis, Minnesota
Minneapolis , nicknamed "City of Lakes" and the "Mill City," is the county seat of Hennepin County, the largest city in the U.S. state of Minnesota, and the 48th largest in the United States...
.
The bank was eventually acquired by Carl Pohlad
Carl Pohlad
Carl R. Pohlad was a successful financier and the owner of the Minnesota Twins baseball franchise from 1984 until his death in 2009.-Early life:...
and had $350 million in assets in 1982 when it acquired the failing Farmers and Mechanics Savings Bank of Minneapolis (F&M) and had nearly $1 billion of assets prior to sale which was arranged by the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
. After the acquisition, the name was changed to Marquette Bank Minneapolis and it had the fourth most assets in the state. The bank was owned by the Bank Shares, Inc. holding company which was controlled by the Pohlad family and which owned several other banks in the Minneapolis area using the Marquette name.
Bank Shares was sold to First Bank (now US Bank) in late 1991 with the deal finally closing in 1993.
Interest rate battle
Marquette was involved in lengthy credit card interestCredit card interest
Credit card interest is the principal way in which credit card issuers generate revenue. A card issuer is a bank or credit union that gives a consumer a card or account number that can be used with various payees to make payments and borrow money from the bank simultaneously...
rate litigation with the First National Bank of Omaha
First National Bank of Omaha
First National Bank Omaha is a subsidiary of First National of Nebraska. It is recognized as the largest privately held bank in the country with $17 billion in managed assets and 5,000 employees...
which resulted in an important US Supreme Court ruling
Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp.
Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. , is a unanimous 1978 U.S. Supreme Court decision holding that state anti-usury laws regulating interest rates cannot be enforced against nationally-chartered banks based in other states...
regulating the banking industry. Marquette brought suit against First National claiming the interest rate charged Minnesota customers using First National credit card services (VISA) though legal in Nebraska, exceeded the interest rate allowed under Minnesota state law. Marquette was also issuing cards but did not exceed the interest rate permitted by the law in the cardholder's State. The Court ruled in 1978 that a Federally chartered bank like First National could offer credit card services nationwide and the maximum interest rate to cardholders was that allowed by the State the bank was located in and not the customer's State. This ruling prompted some US States (South Dakota, Delaware, Utah, Virginia, New Hampshire) to repeal their maximum interest rate laws. Banks offering credit card services quickly established offices and cardholder services in those States to take advantage of the "no cap" interest rates allowed by the State.
External links
- US Supreme Court ruling - MARQUETTE NAT. BANK v. FIRST OF OMAHA CORP., 439 U.S. 299 (1978)
- Secret History of the Credit Card - PBS Frontline Report