![]() Banco was one of three major banks (the others being First Bank System and First Interstate Bancorp) that was allowed to conduct interstate banking under a grandfather clause in the 1927 act. The McFadden Act of 1927 had prohibited banks from operating branches across state lines. One of Banco's strategic advantages in the long run was its ability to operate in multiple states. Membership fell to 83 by 1940, then to 70 by 1952. The number of members did decline, however, as some units in the group merged while others were sold off. None of the Banco members went under – and no depositor lost any savings – because the group was able to move liquidity around the system and in some cases, inject new capital into troubled banks. In 1932, 700 Upper Midwestern banks failed. Another 90 banks joined Banco in its first year of operation, and by 1932 there were 139 affiliates.ĭuring the Great Depression, numerous additional banks failed. Banco acquired stock in the affiliated banks and served as a mutual protection association. Northwest, known more simply as "Banco", was a banking cooperative anchored by Northwestern National Bank in Minneapolis. It was with this backdrop that in early 1929, just months before the stock market crash, two banking associations were formed in the Twin Cities of Minnesota: Northwest Bancorporation and the First Bank Stock Corporation (later known as First Bank System and then U.S. In the Upper Midwest alone, 1,500 banks became insolvent from 1920 to 1929. Many smaller banks that had overextended credit to farmers ran into serious trouble. Great Depression and Banco ĭuring the generally prosperous 1920s, the nation's agricultural sector did not share in the good times. Between 18 deposits more than tripled to more than $10 million. Between 18 the bank's deposits increased from $50,000 to $3 million. ![]() Initially the bank was heavily supported by the Northern Pacific Railroad, but as the city and region grew the bank's deposits and assets grew in kind. Welles were the bank's first two presidents. Early Minneapolis business and political leaders Dorilus Morrison and Henry T. The earliest roots of the company are with the Northwestern National Bank established in Minneapolis in 1872. and since that time has operated under the Wells Fargo name. In 1998, it merged with Wells Fargo & Co. Norwest Corporation was a banking and financial services company based in Minneapolis, Minnesota, United States. ![]()
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