Major Bank Won't Underwrite Eminent Domain Abuse

Hat Tip: Captain Ed

FOXNews.com is reporting that North Carolina based bank BB&T will begin denying loans to businesses benefiting from eminent domain.

In a Jan. 25 release, BB&T executives stated their disapproval of the court's ruling.

"One of the most basic rights of every citizen is to keep what they own," said BB&T Chairman and Chief Executive Officer John Allison, a noted libertarian. "As an institution dedicated to helping our clients achieve economic success and financial security, we won't help any entity or company that would undermine that mission and threaten the hard-earned American dream of property ownership."

This is a brilliant move that will likely not affect the bank's business too much but will influence governmental decisions. While governments spend a lot of money on building projects, they do not underwrite the private development (or even the public development) with tax funds. The reliance on funds provided by banks will now begin influencing the way government does business--an important development.

Allison

has shaped the company's philosophy to reflect core values of ethics, justice, honesty and free enterprise, said [BB&T spokesman John] Dedham. The BB&T Charitable Foundation contributes money to business schools at colleges and universities across the country, hoping to instill the idea that ethical and moral decision-making are inseparable from capitalist endeavors.

I wonder how many other banks will follow suit. Probably few, but if big banks like Bank of America, Citicorp and others follow suit, you will probably see an end to private development on land seized by eminent domain because developers won't be able to underwrite their projects.

Good for BB&T!!