BB& T Restricts Loans to Developers
By Brooke A. MastersWashington Post Staff WriterThursday, January 26, 2006; Page D01
BB&T Corp., a North Carolina-based financial services company with a substantial Washington area presence, said it will not lend money to private real estate development projects that rely on local governments to seize land from reluctant sellers.
The bank and legal analysts said they believe BB&T is the first major financial institution to announce such a policy since the U.S. Supreme Court ruled in June that using "eminent domain" powers for privately owned projects did not violate the Constitution. The court ruling in Kelo v. City of New London sparked public opposition and efforts in Congress and states to put new limits on local governments' power to condemn private land.