BB&T Nixes Certain Eminent Domain Lending

BB&T Corp., Winston-Salem, N.C., has announced that it will not lend to commercial developers that plan to build private projects on land taken from private property owners by eminent domain.The policy change was attributed to a controversial Supreme Court ruling last year in Kelo v. City of New London that governments can seize private property to make way for private development projects. "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 John Allison BB&T's chairman and chief executive officer. In the Kelo case, the court held in a 5-4 ruling that 15 homes in a New London, Conn., neighborhood could be turned over to private developers as a way to generate tax revenue and jobs. Thirty-eight states have passed or are considering laws banning the use of eminent domain for private development, and a similar bill applying a federal ban has passed the House, according to BB&T. The company can be found online at http://www.bbandt.com.