You May Now Return to Responsible Lending Habits

Amanda Carey | June 18, 2009

BB&T Corporation, a bank based in Winston-Salem, NC announced yesterday that it has left the Troubled Asset Relief Program (TARP) by paying $3.1 billion to buy back the preferred stock from the Fed, plus a final dividend payment of approximately $13.9 million. The final amount totaled roughly $92.7 million.

CEO Kelly King was quoted in the press release as saying:

This was, in fact, an excellent investment for the American taxpayer. Our strong capital position allowed us to pay back TARP in a very short amount of time. But what's important today is that we've repaid the government, and now we have a singular focus on the business of serving our clients.

Throughout this period, BB&T has experienced very good loan growth. We will continue to actively pursue and make every good loan we can find.

Former BB&T CEO John Allison however, sang a slightly different tune in his speech last week at the Competitive Enterprise Institute's annual dinner, calling TARP  a "huge rip-off" for the bank because "we didn't want it in the first place."

Nonetheless, BB&T has now begun to rid itself of all vestiges of the TARP program and is returning to its responsible lending habits.  

Other banks that followed in BB&T's footsteps by paying back their TARP funds include U.S. Bancorp, JPMorgan Chase, and Morgan Stanley.

Comments

Tricky Prickears|6.18.09 @ 6:15PM|#

But what's important today is that we've repaid the government

But did they learn their lesson?

Paul|6.18.09 @ 6:17PM|#

Former BB&T CEO John Allison however, sang a slightly different tune in his speech last week at the Competitive Enterprise Institute's annual dinner, calling TARP a "huge rip-off" for the bank because "we didn't want it in the first place."

One shouldn't speak ill of the dead.

Invisible Finger|6.18.09 @ 6:31PM|#

It might be a rip off for the bank, but if the ripped off sum went stright to the government, then it probably WAS a (very tiny) net benefit to the taxpayer. So the 2 CEO were singing the exact samr tune, but in different keys.

Anyway, they may now return to lavish executive bonuses.

</|6.18.09 @ 6:36PM|#

Other banks that followed in BB&T's footsteps by paying back their TARP funds include U.S. Bancorp, JPMorgan Chase, and Morgan Stanley.

Now if they'd just pay off the TARP funds transferred to them by AIG.

|6.18.09 @ 7:52PM|#

Better WSJ link:
http://online.wsj.com/article/SB124482152282410185.html

Allison has always been one of the most reliable libertarians in business. I wish he would run for office in NC, but he's much too smart for that.

|6.18.09 @ 8:34PM|#

I'm glad the government has broken into the loan-sharking business.

Maybe next they'll start coercively forcing us to pay money for "protection".

OH WAIT......

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|6.19.09 @ 7:58AM|#

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robc|6.19.09 @ 8:33AM|#

I refied my house with BB&T TARP money. At least I figured that is where it came from. :)

I wonder if they just left the TARP money sitting in a big pile somewhere until they were allowed to pay it back?

robc|6.19.09 @ 8:33AM|#

Also, they should have paid it back in pennies.

Or, considering the amount, nickels.

|6.19.09 @ 11:06AM|#

Amanda Carey... who is this international woman of mystery?