Barnett Bank of Marion County, N.A. v. Nelson

National bank powers, insurance sales, and federal preemption of state restrictions.

A federal statute authorized national banks in small towns to sell insurance. Florida law prohibited most banks from selling insurance, and the state insurance commissioner ordered Barnett Bank to stop.

The Court held that federal law preempted the Florida restriction because the state law significantly interfered with national bank powers.

Justice Breyer reasoned from the history and structure of national-bank powers. States retain room to regulate, but they may not prevent or significantly interfere with a national bank's exercise of federally authorized powers.

1. How does the allocation of regulatory authority affect coordination, expertise, and capture risk?
2. Which private or systemic risks remain outside the court’s doctrinal inquiry?