But while the Fed won't admit this, it wants all financial institutions to basically follow its own model.Īnd this is where we'll get into future trouble. Sure, BB&T had its own internal models for assessing risk, based on its own experience. Second, the Fed didn't like the firm's less-than-adulatory views regarding economic and financial modeling. The bank took it only after Treasury Secretary Hank Paulson threatened grievous harm. During the financial crisis of 2008-09 he fiercely resisted Treasury Department pressure to take TARP money.
First, the bank's former CEO John Allison IV, who made BB&T the formidable powerhouse it is today, was unusually outspoken in his criticism of bank regulators. The Fed is playing dirty pool here for two reasons. The Fed's thrashing of BB&T, however, is especially disturbing, because it is the best-capitalized institution of the 18. The same is true of Goldman Sachs: Mitt Romney had very close ties to Goldman, and CEO Lloyd Blankfein also didn't do a good job of hiding the fact that he was less than enchanted with Obama. Its real sin is in its boss, Jamie Dimon, who made clear his deep disenchantment with the Obama Administration.
JPMorgan-headlines and congressional hearings to the contrary-is a well-run institution with a good balance sheet.
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