Thursday, January 26, 2006

Bank makes a huge statement....

Miguel sent me the link to this article and I thought it was very interesting. From the above title linked USA Today:

Regional bank BB&T will make no loans to developers who plan to build commercial projects on land taken from private citizens by the government through the power of eminent domain.

"The idea that a citizen's property can be taken by the government solely for private use is extremely misguided; in fact it's just plain wrong," John Allison, chairman and chief executive of the Winston-Salem-based bank, said Wednesday.

BB&T said 38 states have recently passed or are considering laws to ban the use of eminent domain for private development. Similar legislation is pending before Congress.

"While we're certainly optimistic about the pending legislation, this is something we could not wait any longer to address," said BB&T chief credit officer Ken Chalk. "We're a company where our values dictate our decision-making and operating standards. From that standpoint, this was a straightforward decision; it's simply the right thing to do."

BB&T is the nation's ninth-largest bank, with $109 billion in assets and more than 1,400 branches in 11 states and Washington, D.C.

In checking their corporate website, Branch Banking and Trust have an interesting history

While as it states in the USA Today article that they are not sure how much money making this type of a decision will cost them, I have to say first I think it's an awesome thing that they are doing. Second, I wonder how long before someone tries to sue them claiming it is discriminatory lending practice against those who want to use eminent domain for private development.

When most people only focus on the bottom line, it's nice to see a Bank as a policy stand up for property owners.


historymike said...

It is a decent thing to do, Lisa.

Let's hope that was their true aim, and that this is not just a publicity stunt.

Of course, how many eminent domain cases involve potential loans from this bank, anyways?

Maybe it's like me saying I will never allow my daughter to marry a terrorist.

Unknown said...

Could very well be nothing more than a PR tool, but given their history, I'd say it appears they are genuine.

Scott G said...

I think it is cool statement regardless of whether or not it actually costs them something. It would be better if other banks followed suit. Or gave horrible conditions for the loans that made it easy to foreclose on and seize the property. Then, give the mall to those that lost their houses.

I have always backed government forcing people out of homes in flood plains and other areas that were regularly damaged. My grandma's house used to flood 2 or 3 times a year and the best thing that happened was when the city of Des Moines said she couldn't move back in after the last one.

I would not feel the same about a shopping center taking her land

Unknown said...

I agree if an area has a history of being wiped out that the feds should only assist in that a certain number of times before they say, okay that's it you are going to have to move someplace higher or if you stay here we are not going to give you any more federal assistance.

Cyberseaer said...

Dammnit!! Now I have to go to the top 8 banks to get my loans to develop land for my own personal use after the government has gotten all those annoying people living house. This sucks!!!!!!!!

Gee, what a suprise! Cyberseaer comes in with an inane post on something that might help others. Had to do it people, the posts in here were getting a little too serious in here. Thank God I patrol these waters to make sure it isn't that way. Yes, it's all about me.

I greedy accept all aplause and will more than willing take any amounts of cash due to my shameless manner of begging. Hey, it's either you give me the cash now or I apply for government assistance and you will be giving be the cash anyway. My way, there is no paperwork or red tape. ;)

Unknown said...

My, someone is feeling "frisky" today - lol

Do you take pennies?


Cyberseaer said...

I take anything I can get. :)

Scott G said...

I am not even sure what cyberseaer was talking about. I was so inspired by this bank that I hacked in and robbed the top 8 banks so they couldn't afford to help.

I am only going to use the money for good though. A good plasma TV, a good sports team, a good puppy psycologist, and so on.

historymike said...

It's all about doing good, me4president.

I'm glad you are focused on the good things!


Hooda Thunkit (Dave Zawodny) said...

Now, if the Washington ninnies (in this case, the Supreme Ninnies) had done the right thing in the first place, none of this would have been necessary...

Private properety should always be the domain of the owner, not special (commercial) interests.