Business Hero John Allison: BB&T — The Bank That Atlas Built
I remember following BB&T through the recent crisis (2007ff) and hearing about that the bank didn't need or want TARP. Based on its balance sheet and financial strength, it seems apparent. Here is an excerpt from this article:
"Yet after Congress enacted the Troubled Asset Relief Program (TARP), banking regulators forced even healthy banks to take government money, that is, to accept the government as a shareholder. That meant committing to pay the government hundreds of millions in preferred dividends, and giving up valuable warrants so that the government could later purchase common stock at fire-sale prices. Adding insult to injury, Allison had to sign a waiver that allowed the government to unilaterally change the terms of his compensation from the company he’d served for 38 years.
***But he had no choice.*** BB&T was a strong bank, with more than enough capital and more than enough liquidity to see it through the crisis, and a strong loan portfolio. Yet his banking examiner from the federal government told him that the rules had suddenly changed."
A page ripped out of Atlas Shrugged, when Rearden is forced to sign over his business to the government in the name of "public interest."
"Yet after Congress enacted the Troubled Asset Relief Program (TARP), banking regulators forced even healthy banks to take government money, that is, to accept the government as a shareholder. That meant committing to pay the government hundreds of millions in preferred dividends, and giving up valuable warrants so that the government could later purchase common stock at fire-sale prices. Adding insult to injury, Allison had to sign a waiver that allowed the government to unilaterally change the terms of his compensation from the company he’d served for 38 years.
***But he had no choice.*** BB&T was a strong bank, with more than enough capital and more than enough liquidity to see it through the crisis, and a strong loan portfolio. Yet his banking examiner from the federal government told him that the rules had suddenly changed."
A page ripped out of Atlas Shrugged, when Rearden is forced to sign over his business to the government in the name of "public interest."
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- 2Posted by TheBestWithinUs 10 years, 11 months agoWonderful guy! I heard him debate at NYU a year or so ago. it was sponsored by ARI and Demos believe it or not. The lefty kept trying to trap him into saying that he would "let people die" if they didn't have insurance and that "their" wealth was "just a matter of luck at bottom." He artfully skewered him each time. The event was called "First Principles" and it was the third of three debates. Broadcasted by NPR, btw.| Mark as read | Best of... | Permalink
- 2Posted by $ rockymountainpirate 10 years, 11 months agoGreat article. Thanks for posting.| Mark as read | Best of... | Permalink
- 1Posted by fivedollargold 10 years, 11 months agoI attended a lecture several years ago given by Demos co-founder, David Callihan. He artfully dodged my question from the audience. He is the scariest kind of liberal. Not the shrill, in-your-face kind, but thoughtful and soft-spoken. He has his agenda, and he isn't coming off it, nor is he really open to debate. I've seen him a few times on FOX. I consider him just plain wrong on certain issues, but I would not underestimate what he and his organization do behind the scenes to shape liberal policies. I consider them second only to the Center for American Progress in the pecking order of liberal think tanks that influence the Obama administration.| Mark as read | Best of... | Permalink
