*clears throat* As someone born & raised in Delaware, I’m going to chip in with what may be some boring history but helps explain Delaware’s regulations on businesses and finance.

In the early 1800s, the DuPont family settled in Delaware and began what turned into a large dynamite (and then other chemicals) industry. Since Northern Delaware wasn’t as good for farming as much of Southern Delaware, this took off. The Civil War was a boon for Delaware because of munitions, and despite its being a slave state of sorts, the DuPonts kept it with the North.

In the first few decades of the 20th century, DuPont was broken up under antitrust laws (fairly, I studied the company’s history & they were pretty cut-throat in becoming a monopoly). However, the three resulting companies maintained a strong Delaware presence until the mid 20th century. At that point, manufacturing was declining and Delaware was desperate for a way to attract more businesses and jobs, as Kelly said. So they expanded the laws of banking and incorporation. This brought a LOT of jobs to Delaware.

MBNA was a huge employer, and BofA has maintained a presence. Plus you’ve got ING, Chase, etc. Most of my friends’ parents were in chemistry or banking/credit cards, whether on the software side or elsewhere. MBNA’s long-time CEO Charles Cawley was an awesome patron of the arts in Delaware. He sponsored a talented young violinist who was in my highschool French class, putting on several concerts which spotlighted my friend’s talent–and donated all the ticket money to a local charity.

For the more densely-populated Northern Delaware, it seems to have been a profitable decision.

Your mention of dynasty trusts reminded me of another quirk of Delaware law — they still recognize the fee tail, keeping real estate in the family with a large chemical company and a French name.