In the case of First National Bank of Charlotte v. Morgan, the Supreme Court of the United States was asked to decide whether a bank could be held liable for the wrongful acts of its employees. The case arose when the First National Bank of Charlotte (FNBC) was sued by a customer, Morgan, for the wrongful acts of its employees. Morgan alleged that FNBC had breached its duty of care by failing to properly supervise its employees, resulting in Morgan suffering financial losses. The Supreme Court held that FNBC could be held liable for the wrongful acts of its employees. The Court reasoned that FNBC had a duty to exercise reasonable care in the supervision of its employees, and that it had breached this duty by failing to properly supervise its employees. The Court also held that FNBC was liable for the losses suffered by Morgan, as it was foreseeable that such losses would occur if FNBC failed to properly supervise its employees. In conclusion, the Supreme Court held that FNBC could be held liable for the wrongful acts of its employees, and that it was liable for the losses suffered by Morgan. This case established that banks have a duty to exercise reasonable care in the supervision of their employees, and that they can be held liable for the wrongful acts of their employees if they fail to do so.

In the dissenting opinion of First National Bank of Charlotte v. Morgan, Justice Douglas argued that the majority's decision was wrongfully decided and should be overturned. He believed that Congress had not intended to limit state law when it passed the National Bank Act in 1864, as this would have been a violation of states' rights. Furthermore, he noted that if Congress did intend to preempt state laws with respect to national banks then they would have included language explicitly stating so in the act itself. As such, Justice Douglas concluded that since there was no clear indication from Congress regarding preemption or any other limitation on state law concerning national banks, then North Carolina's usury statute applied and must be enforced by federal courts accordingly.