Personnel Is Policy Heterodoxy

29 11 2016

Winston-Salem, North Carolina

Instapundit, quoting from the paywalled WSJ, about John Allison being under consideration for Treas:

In 2006, Mr. Allison made headlines when he declined to lend money for commercial projects on private land seized by eminent domain—a government practice that Mr. Allison believed was an affront to individuals’ property rights.

That would put him in direct odds with Trump himself.  Though if Trump picks him, he probably already knows this, and would be doing this as a public cue that he’s willing to compromise on his own absolutism.

Mr. Allison instilled a conservative lending culture. BB&T avoided negative-amortizing loans and complicated structured products that Mr. Allison called “esoteric” and “illogical.”

That meant BB&T was often overshadowed by North Carolina rival Wachovia Corp., whose risky mortgage loans fueled huge growth before the crisis—only to then cause its downfall. That bank was purchased during the height of the crisis by Wells Fargo & Co.

You mean Allison was clever enough to think that giving full LTV $720k mortgages to immigrant strawberry pickers whose claimed income wasn’t much higher than minimum wage wasn’t a good idea?  He had this crazy idea that financial solubility and stability was more important that social justice. And the bank he run didn’t fall down go boom for it, while it worked out a lot different for its main in-state rival which went the other way?  As Instapundit himself says, you never go full SJW.

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One response

29 11 2016
countenance

Says he loves Ayn Rand.

Things just ain’t what they used to be. If all that is necessary to be an Ayn Rand lover is to do things in business that are suggestive of having a conscience and having adequate business sense makes you an Ayn Rand lover.




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