Posted on 08/02/2009 5:39:13 AM PDT by BCrago66
OVER much of the last four decades, John A. Allison IV built BB&T from a local bank in North Carolina into a regional powerhouse that has weathered the economic crisis far better than many of its troubled rivals — largely by avoiding financial gimmickry.
And in his spare time, Mr. Allison travels the country making speeches about his bank’s distinctive philosophy.
(Excerpt) Read more at nytimes.com ...
Mr. Allison says the government forced BB&T and some other healthy banks to accept TARP money to obscure that they were simply trying to save several large banks like Citigroup.
“Everyone thinks we got some kind of subsidy,” he says, noting that his company paid the money back in June, with interest. “It’s going to cost us about $250 million for money we didn’t want.”
Can't help but think that the gov used TARP to rob the banks.
Bank and other financial institutions live under regulatory regimes that allow so much discretion on the part of the regulators, that they can be forced to take actions against their own interests. There’s a constant blackmail/extortion threat.
Sure, BB & T didn’t want TARP money. It’s really a matter of remaining “benevolent oligarchs.”
They did, however, loan a character named A. Bray Cary $100 million to purchase a TV station group to use as his personal plaything. The group is not worth anything near that currently. Worse, the evidence suggests Cary has run the stations into the ground through poor management. BB & T will not take a $100 million hit, but they will IMO end up taking a substantial haircut on the deal.
We also note the linked article deals more with Ayn Rand more than anything else.
The banks must be restrained, the financial system reformed, and the economy brought back into balance before the US can experience a full economic recovery.
Thank God, I am and have been a BB&T customer for several years.
I just noticed this article!
BB&T was founded in the small city where I work. They still have many employees there, and I have quite a few friends who’ve been there for a long time.
I’m bumping this so I won’t forget to read the whole thing tomorrow.
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