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This seems like an unfair attack (edit: especially as below it seems it's not even accurate). As an example of what a company actually run by someone who advoca
by travisp 14y ago
This seems like an unfair attack (edit: especially as below it seems it's not even accurate). As an example of what a company actually run by someone who advocates that philosophy looks like, take a look at BB&T, which avoided much of the subprime lending crisis. The bank refused to underwrite seemingly profitable mortgages that they thought might be harmful to customers (since property values couldn't go up forever), even though Countrywide, Bank of America, and others underwrote negative amortization mortgages. In the long run, the CEO understood he could be more profitable by entering into mutually beneficial deals.
“We knew that we would be setting up a lot of young people to get in trouble if we made negative amortization mortgages,” Allison said in a recent interview. “I’m never going to make a decision that I believe is bad for my clients, even if I can make a profit in the short-term, because it will always come back to haunt me.”
Sources:
On avoiding ARMs: http://www.aier.org/article/7594-restoring-trust-banking http://www.aier.org/article/7594-restoring-trust-banking
On being run by an Objectivist and guiding the bank by Ayn Rand's philosophy: http://www.nytimes.com/2009/08/02/business/02bbt.html?pagewanted=all http://www.nytimes.com/2009/08/02/business/02bbt.html?pagewa...