Quote :

"BB&T Won't Offer Eminent Domain Loans Wednesday January 25, 3:07 pm ET By Paul Nowell, Associated Press Writer http://biz.yahoo.com/ap/060125/bb_t_eminent_domain.html?.v=5 BB&T Says It Won't Offer Loans to Developers Involved in Eminent Domain Projects CHARLOTTE, N.C. (AP) -- Regional bank BB&T Corp., one of the nation's largest financial institutions, 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 company said Wednesday. "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, the bank's chairman and chief executive, said in a statement. In an interview, BB&T chief credit officer Ken Chalk said the bank expects to lose only a tiny amount of business, but believes it was obligated to take a stance on the issue. "It's not even a fraction of a percent," he said. "The dollar amount is insignificant." But he added: "We do business with a large number of consumers and small businesses in our footprint. We are hearing from clients that this is an important philosophical issue." Chalk said he knows of no other large U.S. bank with a similar policy. BB&T, which is headquartered in Winston-Salem, ranks among the nation's top 10 banks by assets. In June, a divided Supreme Court ruled that cities may raze people's homes to make way for shopping malls or other private development. The 5-4 decision gave local governments the power to seize private property in the name of increased tax revenue. The ruling upheld a decision by the City of New London, Conn., to seize seven property owners' land so developers could build a hotel and high-end condominiums to keep pharmaceutical giant Pfizer expanding in the state. Scott Bullock, a senior attorney with the Arlington, Va.-based Institute of Justice, who represented homeowners in the New London case, applauded the bank's decision. "Eminent domain abuse is wrong and unconstitutional," Bullock said in a statement. "BB&T has stepped up and recognized its corporate responsibility to not be a part of this shameful abuse of individual rights." The policy also will protect the assets of banks such as BB&T by not tying up their money in projects that may draw political opposition, said Columbia University law professor Thomas Merrill, a specialist on eminent domain. Merrill added that he did not believe there were many cases similar to the one that developed in New London. "No one knows how many of these projects are out there because the data is flimsy," he said. "But my hunch, from what data we do have, is that the number is relatively small and concentrated in large congested cities like New York, Boston or Baltimore." In its statement, 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 the U.S. Congress. "While we're certainly optimistic about the pending legislation, this is something we could not wait any longer to address," Chalk said in a statement. "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, with $109 billion in assets, operates more than 1,400 branches in 11 states and Washington, D.C. http://www.bbandt.com"

This is a moral stand; the company says the practice is just wrong. It is also fairly widespread. I am sure the business implications were discussed. No other bank has announced such a policy that I've seen. BB&T noted that 38 states have passed or are considering passing laws to ban the use of eminent domain for private development. Let's hope some other banks start to adopt the same moral stance....and put an end to the obscene seizure of property in America for private purposes.

1/26/2006 1:55:42 PM

Nice. It's rare to see a corporation take a stand.

1/26/2006 2:11:53 PM

This is one reason I am heavily invested in BB&T. They are one of the last few major corporations/banks that have have firm ethics and morals they stick to.

1/26/2006 2:22:07 PM

I'm sure they probably banked (no pun intended) on gaining more business from the average joe citizen that feels slighted by the Supreme Court ruling than the business they felt like they would lose in making that policy.

1/26/2006 3:28:46 PM

Yea, I can't help but be a cynic and know that they aren't going to lose money on this. I have a real problem knowing that as long as banks aren't speculating, they NEVER go out of business. I have a real problem with this and the way the FED is set up to keep them from going out of business.

1/26/2006 3:34:20 PM

That's badass.

1/26/2006 3:35:25 PM

nice

1/26/2006 4:05:05 PM

Quote :

""It's not even a fraction of a percent," he said. "The dollar amount is insignificant." "

That implies that if it was a bit more than a fraction of a percent, they wouldn't have done it.

1/26/2006 4:18:10 PM

To hell with BB&T. No dollar amount is insignificant.

1/26/2006 4:20:52 PM

This is yet another reason I have banked with them for my entire adult life. As a company, they go so far out of the way for their customers time after time, it really is refreshing. For me personally, they have gone above the call of duty on several occasion with absolutely no financial motivation to do so.

1/26/2006 5:20:14 PM

I love BB&T. Gave me a great interest rate for a first-time home owners loan and just great people all around.

A small, but significant story: I needed one single document notarized. I go to Harris Hall on campus and the conversation goes: "Do you have a notary on hand to notirize this document?" "YES! Wait...is it a university document?" "No..." "sorry, can't do it."

Went over to Wachovia and had the SAME conversation, 'cept they asked if I banked w/ Wachovia. When I said no they straight turned me down no questions asked. I'm thinking "Great job you tools, now I will never think about banking with you fags..."

Went to a BB&T in Cary, got it done in 10 seconds without any question to my banker. After she notarized it, then she asked if I banked w/ BB&T. That's how you do it.

1/26/2006 5:33:01 PM

I think the best thing that might come of all this is when all the other banks jump on the bandwagon so they don't lose potential customers that might be inclined to open accounts in banks with this policy.

I think the more interesting thing is how the people with all the money have the potential to essentially override a supreme court ruling. Not in the sense where the law will be interpreted differently but in the sense that corporations that want to take advantage of eminent domain would have their hands tied. I don't know if enough banks would go for it to make that a reality though. International banks wouldn't care and I'm sure the state and local governments would step in with tax breaks or subsidies.

Then again the easiest way around that would be for corporations to take out loans for other endeavors and just set aside their freed up capital for eminent domain projects.

1/27/2006 7:28:49 AM

Nice job, BB&T. If I weren't so satisfied with NC State Employees Credit Union, I'd consider them. Maybe I will consider them for investments. Hmm...

1/27/2006 8:13:31 AM

I switched from bbt to wachovia...i wasnt very happy with bbt

1/27/2006 8:26:41 AM

http://www.thewolfweb.com/message_topic.aspx?topic=377004

1/27/2006 8:31:29 AM

i'll still keep my money in the internet banks. much higher returns

1/27/2006 8:32:21 AM

And how do you deposit money in these Internet banks?

via AIM?

1/27/2006 8:40:35 AM

EFT

1/27/2006 8:46:58 AM

from.... a B&M bank, am i right?

1/27/2006 9:39:47 AM

not always. USAA has a bank that has no local branches or anything, gotta do eft or deposit by mail.

1/27/2006 9:51:08 AM

Sounds like a pain in the ass to mail a deposit in, when checking (and other services) is free at just about every B&M bank. Then you link it to an online bank, and you're good to go. Basically my point is that it does make sense to have a checking acct at a B&M bank.

1/27/2006 10:06:40 AM

yeah it does. but with the differences in interest rates these day, doesnt make sense to keep a balance in one, just to use it as an intermediary between ING or what.

1/27/2006 10:41:13 AM

totally agree

1/27/2006 10:46:20 AM

Quote :

"Nice job, BB&T. If I weren't so satisfied with NC State Employees Credit Union, I'd consider them. Maybe I will consider them for investments. Hmm..."

Agreed - it's hard to beat SECU's rates locally The only thing I currently have with BB&T is auto insurance.

1/27/2006 11:08:48 AM