BB&T No Loans to Developers Using Eminent Domain

Few people like banks and even fewer like big banks. BB&T, one of the largest banks in the mid-Atlantic is taking a stand for property rights that may impact earnings.

BB&T Corp. says it will lend no money to developers that take land from citizens to build shopping centers, condominiums and other private projects using eminent domain.

"This is a rarity -- a bold move by BB&T," Richard Coughlan, associate dean of the University of Richmond's Robins School of Business, said yesterday.

"The company is willing to forgo revenue and profits in pursuit of values."

Winston-Salem, N.C.-based BB&T, one of the largest employers in the Richmond area, announced the decision Wednesday in response to a U.S. Supreme Court decision in June that allows governments to seize personal property for private development.

Eminent domain traditionally was used by government to obtain property for highways, utilities and other public facilities. The high court's ruling allowing expanded authority was based on the promise of jobs and tax revenue from private development.

BB&T said it was optimistic about pending legislation, but it could not wait.

"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, BB&T chairman and chief executive officer, said in a statement.

I bank with this company and as all large institutions, they have issues, but the understanding of the importance of property rights is not one of them. I cannot stress enough how pivotal this issue is for our future economic prosperity. Without the protection of personal property prosperity will be difficult to obtain.