Wilmington, Delaware - Economy

Economy

Much of Wilmington's economy is based on its status as the most populous and readily accessible city in Delaware, a state that made itself attractive to corporations with business-friendly financial laws and a longstanding reputation for a fair and effective judicial system. Contributing to the economic health of the downtown and Wilmington Riverfront regions has been the presence of Wilmington Station, through which 665,000 people passed in 2009.

Wilmington has become a national financial center for the credit card industry, largely due to regulations enacted by former Governor Pierre S. du Pont, IV in 1981. The Financial Center Development Act of 1981, among other things, eliminated the usury laws enacted by most states, thereby removing the cap on interest rates that banks may legally charge customers. Many major credit card issuers, including Bank of America (formerly MBNA Corporation), Chase Card Services (part of JPMorgan Chase & Co., formerly Bank One/First USA), and Barclays Bank of Delaware (formerly Juniper Bank), are headquartered in Wilmington. The Dutch banking giant ING Groep N.V. headquartered its U.S. internet banking unit, ING Direct, in Wilmington. The United Kingdom's HSBC has their American operations headquartered in Wilmington. Wilmington Trust is headquartered in Wilmington at Rodney Square. Barclays and ING Direct have very large and prominent locations located along the waterfront of the Christina River. In 1988, the Delaware legislature enacted a law which required a would-be acquirer to capture 85 percent of a Delaware chartered corporation's stock in a single transaction or wait three years before proceeding. This law strengthened Delaware's position as a safe haven for corporate charters during an especially turbulent time filled with hostile takeovers.

Wilmington's other notable industries include insurance (American Life Insurance Company, Blue Cross and Blue Shield of Delaware), retail banking (including the Delaware headquarters of: Wilmington Trust, PNC Bank, Wachovia Bank, JPMorgan Chase, HSBC, Citizens Bank, Wilmington Savings Fund Society, and Artisans' Bank), and legal services. A General Motors plant was closed in 2009. Wilmington is home to one Fortune 500 company, E.I. du Pont de Nemours and Company. In addition, the city is the corporate domicile of more than 50% of the publicly traded companies in the United States, and over 60% of the Fortune 500.

Delaware chartered corporations rely on the state's Court of Chancery to decide legal disputes, which places legal decisions with a judge instead of a jury. The Court of Chancery, known both nationally and internationally for its speed, competence, and knowledgeable judiciary as a court of equity, is empowered to grant broad relief in the form of injunctions and restraining orders, which is of particular importance when shareholders seek to block or enjoin corporate actions such as mergers or acquisitions. The Court of Chancery, as a statewide court, may hear cases in any of the state's three counties. A dedicated-use Chancery courthouse was recently constructed in Georgetown, Sussex County, which has hosted high-profile complex corporate trials such as the Disney shareholder litigation.

Delaware has among the strictest rules in America regarding out-of-state legal practice, allowing no reciprocity to lawyers who passed the bar in other states.