Raleigh NC| BB&T CEO Denounces Bailout Plan
CEO of BB&T Blasts $700 Billion Bailout
John Allison, CEO of BB&T, recently spoke out against the $700 billion bailout plan that is expected to make its way through Congress this week. Allison cited several problems with the bailout in a letter to Congress last week.
In his letter, Allison pointed out that the government should be spending the money to buy homes, not securities backed by mortgages. He also questions how the government plans to value real estate assets. If the government overpays for the assets it will be hurting taxpayers; if the government underpays it will be hurting the real estate market. Allison’s final complaint was that the U.S. Treasury and investment banks Goldman Sachs and Morgan Stanley are so interdependent that the Treasury cannot objectively assess the implications of the bailout plan.
BB&T, although hurt from the economic and real estate crisis, has continued to turn a profit. BB&T did not invest heavily in sub-prime lending. The Winston-Salem based company is preparing for the departure of John Allison, who will be retiring at the end of the year.
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