Marquette Bank Minneapolis
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1920 |
| Fate | Acquired by First Bank System (later US Bank) in 1992 |
| Headquarters | Minneapolis , United States |
Key people | Carl Pohlad (owner) |
| Products | Banking services, credit cards |
| Owner | Bank Shares, Inc. (controlled by the Pohlad family) |
Number of employees | Unknown |
Marquette Bank Minneapolis, originally known as Marquette National Bank, was a financial institution headquartered in Minneapolis notable for its involvement in the influential Supreme Court case Marquette National Bank of Minneapolis v. First of Omaha Service Corp., which had a significant impact on banking regulations across the United States.
History
Established in 1920 and taking its name from Marquette Avenue, a central financial district in Minneapolis, the bank was purchased by Carl Pohlad and reported assets totaling $350 million by 1982. That same year, it acquired the struggling Farmers and Mechanics Savings Bank of Minneapolis (F&M), which increased its assets to close to $1 billion prior to being sold under arrangements made by the Federal Deposit Insurance Corporation. After rebranding as Marquette Bank Minneapolis, it became the fourth largest bank in Minnesota by asset size. The bank was owned by Bank Shares, Inc., an entity controlled by the Pohlad family, and operated multiple Marquette-branded branches within Minneapolis.
In January 1992, Bank Shares revealed plans to sell Marquette Bank Minneapolis to First Bank System (which later became US Bank) through a stock transaction valued at $230 million, with the deal closing in December 1992 for $200 million. This acquisition encompassed 22 branch locations and $2.1 billion in assets, marking one of the largest banking consolidations in the Twin Cities area. Following the merger, First Bank System streamlined operations by consolidating branches and reducing personnel.
Interest rate battle
Marquette played a central role in major litigation concerning credit card interest rates against the First National Bank of Omaha, which culminated in the landmark Supreme Court case Marquette National Bank v. First of Omaha Service Corp.. The dispute arose from Marquette's objection to First National charging Minnesota customers interest rates permissible under Nebraska law but exceeding Minnesota's legal limits. Both institutions issued credit cards with interest rates compliant with their respective states’ laws. The 1978 Supreme Court decision determined that federally chartered banks are authorized to apply their home state’s interest rates nationwide rather than those of the customer’s state. This ruling prompted several states—including South Dakota, Delaware, Utah, Virginia, and New Hampshire—to eliminate interest rate caps, encouraging banks to relocate credit card operations there to capitalize on higher allowable rates.
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