Alexis Glick With Anti-TARP, BB&T CEO Kelly King On Colonial Bank, The FDIC & Sheila Bair
BB&T (NYSE:BBT) takes over $22 billion of Colonial assets and the peek under the hood has been neither pretty nor pleasant for CEO Kelly King. BB&T recently announced that they will apply an estimated markdown of 67% to Colonial's construction loan portfolio. Let that sink in a for a moment. That means that assets being marked at 100 cents on the dollar were actually worth 33 cents in the eyes of an honest CEO. This is in addition to the $3 billion that taxpayers forked over to cover Colonial's irresponsible lending.
This is what happens when a captured Congress, beholden to the banking lobby, forces the FASB to legalize lying. With no need to mark portfolios honestly, we perpetuate massive insolvency. By the time the FDIC steps in, these banks are insolvent several times over versus their tiny capital base. This shite is borderline criminal and there ought to be a law. Wait, there was.
BB&T Corporation President and CEO Kelly King on Colonial Bank, their poorly marked assets and the FDIC's depleted insurance fund.