February 16, 2013

Government Intimidating Businesses’ Free Expression, Banking Division

Filed under: Economy,Taxes & Government — Tom @ 8:30 am

This probably could be Part 1 of a very long-running series.

An Investor’s Business Daily column by Paul Sperry (“Top Banker Says Government Caused Housing Crisis”) deals with one banker who isn’t intimidated, largely because he’s leaving the industry:

Bribed by federal bailouts and threatened by lawsuits, top bankers have grudgingly gone along with the narrative that greed and deregulation caused the recession.

But one prominent CEO is breaking ranks as he leaves the embattled industry.

While running regional giant BB&T for two decades, John Allison had an insider’s view of the factors behind the crisis. A burst of greed wasn’t one of them, he says. Nor was deregulation.

“The financial industry was not deregulated, it was misregulated,” he asserted.

In his new book, “The Financial Crisis and the Free Market Cure,” Allison says at every step of the way, Washington politicians and regulators brought on the crisis and then made things worse during the panic.

Now, he warns, they’re sowing the seeds of another financial crisis, thanks to new rules sold to the public as insurance against another crisis but that in fact double down on old mistakes.

Read (and bookmark) the whole thing.

In June 2009, BB&T repaid its $3 billion in TARP loans early to get out from under its most onerous regulations.

In September 2008, Allison warned that the Troubled Asset Relief Program (TARP) was “primarily a bailout of poorly run financial institutions…. Corrections are not all bad. The market correction process eliminates irrational competitors.”

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