Minnesota Attorney General Keith Ellison on Wednesday moved to end a battle over the future of Bremer Financial Corp., Minnesota's fourth-largest bank, by seeking new trustees for the charitable trust that owns it.
In doing so, Ellison sided with Bremer Financial executives in a fight over who can sell the company. While the trust owns the bank, it is barred by federal law from controlling it. The bitter dispute has riveted Minnesota's bankers, nonprofit executives and the St. Paul business community, where Bremer Financial and the Otto Bremer Trust are based.
Ellison accused the trustees — Brian Lipschultz, Daniel Reardon and Charlotte Johnson, all of whom inherited their roles — of violating state laws by putting their personal interests over those of charities with "a breathtakingly reckless hostile takeover attempt" of Bremer Financial.
"I do not take this action lightly," Ellison said in a statement. "But as the chief law officer of the state and supervisor of charitable trusts in Minnesota, I have the duty to make sure charitable assets are used properly and for the benefit of the public, not the private aims and personal enrichment of the trustees."
Ellison asked a Ramsey County judge, who is overseeing multiple lawsuits in the dispute, to oust them immediately.
The trustees said they will fight the move. They called Ellison's accusations unfounded and "government overreach at its worst."
"An objective court will reject it as the political grandstanding it is," the trustees said in a statement.
They accused Ellison of initially supporting their efforts to find a buyer for the bank, but changing his mind after Bremer Financial hired an adviser with a political connection to him. The trustees did not identify that person.