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Arlington, Va.—BB&T, the nation's ninth largest financial holdings company with $109.2 billion in assets, announced today that it "will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain."
In a press release issued today by the bank, BB&T Chairman and Chief Executive Officer John Allison, said, "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. One of the most basic rights of every citizen is to keep what they own. 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."
"BB&T's principled stand sets an example that should inspire other lenders and should become the new industry standard," said Institute for Justice President and General Counsel Chip Mellor. The Institute for Justice litigated the Kelo case, in which the U.S. Supreme Court allowed the taking of private property for someone else's private use in the guise of "economic development." Mellor said, "You can and should accomplish economic development through private negotiation, not the use of government force through eminent domain. As far as we're concerned, BB&T now stands for Best Bank in Town."
The U.S. Congress is now considering bipartisan legislation that would federally de-fund eminent domain for private use. Although the House of Representatives overwhelmingly passed legislation that would block any federal funds going to private development projects on land taken through eminent domain, the Senate has yet to vote on companion legislation. Last week, U.S. Senate Majority Leader Bill Frist (R-TN), however, commented on an eminent domain case that was argued before the Ohio Supreme Court. The case involves Carl and Joy Gamble, homeowners from Norwood, Ohio, who could lose their home through eminent domain for a privately owned mall and high-end apartments. Frist wrote in an op-ed published by the Cincinnati Enquirer, "I have some pretty clear thoughts about the [Norwood] case: The Gambles should keep their home and the developer should either build around it or cancel the development plans altogether. . . . Quite simply, no family should ever risk losing its home because a government wants to help a private developer."
Scott Bullock, an IJ senior attorney who argued the Kelo case, said, "Eminent domain abuse is wrong and unconstitutional. BB&T has stepped up and recognized its corporate responsibility to not be a part of this shameful abuse of individual rights."
Dana Berliner, an IJ senior attorney who argued the Gambles' case before the Ohio Supreme Court, said, "Throughout the country, banks have been silent partners in the unholy alliance between local governments and private developers. Banks finance developers and cities that use eminent domain to take someone's home or business and turn the land into new stores, condos, and office space. Others will hopefully follow BB&T's courageous example."
http://www.ij.org/editorial/bbt-wont-fund-ED.html
WEB RELEASE: January 25, 2006
Media Contact:
John Kramer or Lisa Knepper
(703) 682-9320
[Property Rights]
