M&I Bank

M&I Bank is a regional commercial bank headquartered in Milwaukee, Wisconsin known for retail banking, commercial lending, and wealth management operations across the Midwestern United States. The institution evolved through 19th- and 20th-century expansions concurrent with developments in Milwaukee Road, Great Lakes, Chicago financial markets and Midwestern industrialization. Its activities intersected with major actors such as JP Morgan Chase, Wells Fargo, Bank of America, Goldman Sachs, and regional rivals like U.S. Bancorp and PNC Financial Services.

History

Founded in the mid-19th century amid the rise of Milwaukee commerce and the expansion of the Chicago and North Western Transportation Company, the bank's origins paralleled institutions such as First National Bank of Chicago and Northern Trust. Over decades it navigated episodes including the Panic of 1873, the Great Depression, regulatory changes following the Glass–Steagall Act, and postwar consolidation influenced by entities like Federal Reserve System and FDIC. During the late 20th century it pursued growth through acquisitions similar to strategies used by Harris Bankcorp and Norwest Corporation, expanding services in parallel to eras marked by the Gramm–Leach–Bliley Act and the rise of mortgage-backed securities. In the early 21st century it confronted competitive pressures from national insurers such as Prudential Financial and asset managers such as BlackRock, ultimately becoming the target of merger discussions culminating in a transaction with BMO Financial Group, reflecting broader consolidation trends exemplified by the Royal Bank of Canada and Toronto-Dominion Bank.

Services and Products

The bank provided a range of offerings including retail checking and savings similar to those at Chase Bank, commercial lending akin to KeyBank practices, mortgage origination paralleling Countrywide Financial before its collapse, and wealth management services comparable to Merrill Lynch and Edward Jones. Its product set included small business credit lines used by clients like those in Milwaukee County, municipal finance arrangements resembling deals made with City of Chicago, treasury management services used by manufacturers in Milwaukee, and trust services mirroring offerings at Northern Trust Corporation. The institution participated in syndicated loans and correspondent banking with counterparties such as Citigroup and Bank of New York Mellon, and offered online banking platforms competing with services from Ally Bank and Capital One.

Corporate Structure and Governance

Organized as a subsidiary of Marshall & Ilsley Corporation, the bank's governance mirrored public companies listed on exchanges similar to the New York Stock Exchange and was overseen by a board of directors including figures tied to corporations such as Johnson Controls and ManpowerGroup. Senior executives coordinated compliance with regulators like the Office of the Comptroller of the Currency and reported to shareholders including institutional investors such as Vanguard Group and BlackRock. Compensation committees, audit committees, and risk committees followed standards advocated by organizations such as the Securities and Exchange Commission and Financial Accounting Standards Board, and corporate actions were influenced by proxy advisory firms like Institutional Shareholder Services.

Financial Performance

Financial metrics showed cycles comparable to regional banks including US Bancorp and Regions Financial Corporation, with net interest income affected by Federal Reserve rate changes and treasury yields similar to movements in 10-year Treasury note yields. The bank reported revenue streams from interest income, fees, and wealth management, and its balance-sheet composition included loans, securities, and deposits resembling asset mixes at PNC Financial Services and BB&T (now Truist). During periods of credit stress akin to the 2008 financial crisis, asset quality metrics and nonperforming loans attracted scrutiny comparable to that faced by Washington Mutual and IndyMac Financial Services.

Controversies and Legal Issues

The bank encountered legal and regulatory challenges paralleling cases involving Wells Fargo and HSBC, including litigation over loan servicing, consumer compliance matters under statutes administered by the Consumer Financial Protection Bureau, and disputes arising from mortgage securitization practices like those at Countrywide Financial and Bear Stearns. It engaged in settlements and consent orders with federal and state regulators similar to resolutions involving Citicorp and Bank of America, and faced class actions and enforcement actions that invoked statutes such as the Truth in Lending Act and Real Estate Settlement Procedures Act in contexts comparable to cases against Ally Financial and SunTrust Banks.

Category:Defunct banks of the United States