From Tyler Cowen at The Volokh Conspiracy, who asks the question Is Atlas Shrugging ?, comes news of an apparent ally for property owners in the fight against developers and local governments who use eminent domain for private benefit.
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.?
The official BB&T press release can be found here, where you’ll also find this statement by BB&T’s Chairman:
?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,? said BB&T Chairman and Chief Executive Officer John Allison.
?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.?
Cowen directs his readers to this press release by the Institute for Justice, and USA Today is also reporting on this announcement.
For those of you outside the Southeastern United States, here’s an idea of what this potentially means:
BB&T operates more than 1,400 financial centers in the Carolinas, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana and Washington, D.C.
With $109.2 billion in assets, BB&T Corp. is the nation?s ninth largest financial holding company.
With its 2002 acquisition of First Virginia Bank, I became a BB&T customer. Today, I can honestly say that I am proud to be one. Bravo BB&T.
Update 1/26: More on this story in today’s Washington Post.
Update1/26 # 2: The New York Times article on this includes, of course, the obligotory quote from a collectivist:
But Maureen L. McAvey, a senior fellow at the Urban Land Institute, a developers’ organization based in Washington, said that it was odd that a bank would not want to judge each case on its merits to see if the forced sale of property was justified.
“It’s curious that a major financial institution would choose to be both judge and jury,” she said. “Many projects that use eminent domain are very important for the entire community.”
Perhaps because they see the tide turning against these projects and realize it won’t be economically beneficial to them ? Or maybe its just called princples. Look into them Ms. McAvey.
And then the story concludes with something I’ve got to think a sane editor at the Times would’ve kept out just for appearances:
The New York Times Company used eminent domain to acquire the land for its new headquarters under construction in Midtown.
I’m guessing BB&T wasn’t involved in that deal.
Technorati Tags: Kelo, Eminent Domain, Property Rights
