In this interview, Janklow tells the story of how South Dakota lifted its cap on interest rates so it could draw capital and jobs, and how soon after, Citibank moved its credit card operation from New York, because by making South Dakota its home state, it could then charge higher interest rates.
What year did Citibank move from New York to South Dakota?
On the last day of the historic 1980 session, at Governor Janklow’s urging, legislation inviting Citibank to South Dakota was introduced, passed and signed into law.
Why did credit-card companies move to South Dakota?
Because South Dakota had just passed a law that eliminated caps on interest rates. Citibank relocated its credit-card operations to South Dakota, where it could charge cardholders any interest rate it wanted to.
Why are banks headquartered in South Dakota?
The reason these banks decided to set up shop in South Dakota is obvious; they wanted to be close to Mount Rushmore. Growing up in Wyoming, and spending many a summer weekend at the monument, I can certainly appreciate the sentiment.
What is the most profitable part of a bank?
Private banks
Private banks still the most profitable part of banking, but margins squeezed.
Who makes up the sweet spot in the credit card industry?
Ed Yingling, incoming president of the American Bankers Association, tells FRONTLINE that revolvers are “the sweet spot” of the banking industry. This “sweet spot” continues to grow as the average credit card debt among American households has more than doubled over the past decade.
How much does the average family own in credit card debt?
On average, Americans carry $6,194 in credit card debt, according to the 2019 Experian Consumer Credit Review. And Alaskans have the highest credit card balance, on average $8,026.
What is the biggest bank in South Dakota?
CorTrust Bank
CorTrust Bank named top bank in South Dakota by Forbes.
When did Citibank move to Sioux Falls South Dakota?
Citibank moved its credit card operations to Sioux Falls, South Dakota in 1981 after the state eliminated caps on interest rates. In 2013, Citibank employed 2,900 in Sioux Falls and is one of the largest employers in the city.
When did Citibank move its credit card operation?
NARRATOR: In 1981, Citibank moved its credit card operation from New York to South Dakota. BILL JANKLOW: From the time I met them until we passed our legislation, it was just several weeks. I mean, we really moved.
Where is Citibank located in the United States?
Acquired Citibank (Maryland), National Association ( 25295) in TOWSON, MD Change trust powers from TRUST POWERS NOT GRANTED to LIMITED TRUST POWERS GRANTED Change trust powers from LIMITED TRUST POWERS GRANTED to TRUST POWERS TERMINATED
Where is the Citi headquarters in Sioux Falls?
The new building is located in The Edges office park in southwest Sioux Falls, at 5800 S. Corporate Place. The finishes and layout are similar to other Citi offices, including the New York corporate headquarters, Corbat said. “We really modeled this after .. our own standards we’ve created,” he said.
