ST. PAUL, Minn. – A state lawmaker last week pulled a bill that would have given preference on state and municipal deposits to credit unions and community banks.
The bill directed the Minnesota Management & Budget office to study the feasibility of splitting up the contract for the state’s 264 large accounts, which together can hold between $10 million and $100 million at any given time. Those big accounts currently are managed by U.S. Bank, which collects $500,000 a year in fees under a five-year contract to manage them.
Credit unions and community banks already hold 268 of the state’s 397 small accounts, which range in size from $5,000 to $50,000 and hold deposits for state parks, correctional facilities and deputy registrars. Local branches of major banks, including U.S. Bank and Wells Fargo, hold the rest.
