The President and Directors of the Bank of the Metropolis brought a case against The President, Directors, and Company of the New England Bank. At issue was whether or not an act passed by Congress in 1841 allowing state banks to issue notes for circulation as money was constitutional. The Supreme Court held that it was unconstitutional because it violated Article 1 Section 8 Clause 5 which gives Congress exclusive power to coin money and regulate its value. This decision established that Congress could not delegate this power to any other body without violating the Constitution. Furthermore, this ruling set a precedent for future cases involving Congressional delegation of powers granted exclusively by Article I Section 8 Clause 5.

In this case, the Supreme Court was asked to decide whether a bank in Washington D.C. could sue a bank in Massachusetts for nonpayment of an outstanding debt. The majority opinion held that the two banks were not citizens of different states and thus did not have standing to bring suit against each other under Article III of the Constitution. However, Justice McLean dissented from this ruling and argued that Congress had granted jurisdiction over such cases to federal courts through its power under Article IV, Section 2 of the Constitution which grants Congress authority over interstate commerce disputes between citizens of different states or territories. He further argued that since both banks were incorporated by their respective state legislatures they should be considered as “citizens” within the meaning intended by Article IV and therefore have standing to bring suit against one another in federal court despite being located in separate jurisdictions