Louis Moore - BB&T
By Jill Santuccio
                   
Louis Moore, the Charlotte Group President of BB&T has been in his role since 2006 and reminded us that "there are more than two banks in this town," referring to giants Bank of America and Wachovia/Wells Fargo. He quipped that in a recent survey of careers, bankers now rank third from the bottom (just above congress and attorneys) of "trusted professionals," and that he hasn't been on a corporate jet in five years.
 
Moore was quick to point out that while BB&T did not accept any funds in the first wave of "bailouts," they did take $3.1 billion in the second wave as they "were not given much of an opportunity to say no." The money will have to be paid back at five percent interest, which increases to nine percent if not paid back on time. He feels that the economic downturn will be harder on smaller banks and that more banks are certain to fail given the fact that they will face tougher restrictions and scrutiny now.
 
The leadership of BB&T, although "tempted," made a conscious decision not to take on "toxic assets" in the form of subprime mortgages. "We didn't feel it was right to pass along that risk to our clients," he explained, saying that 70 percent of the bank's clients are individuals and the remaining 30 percent are corporations - inverse to some of the nation's bigger, top banks.
 
Since BB&T is a huge real estate lender, there is some higher risk moving north from Florida and Georgia, where the real estate crunch is hitting harder than in the Carolinas. Still, Charlotte doesn't seem to be seeing as harsh a downturn in commercial and industrial real estate ventures, he said.
 
BB&T was one of only three of the top 20 banks in the nation that posted profits in the fourth quarter of 2008 and Moore attributed that to both the decision not to get into "toxic assets," as well as the possibility that people moved their deposit accounts over to BB&T for fear of what might happen to some of the other banks. BB&T grew deposits by seven percent in the fourth quarter, whereas the national average was three-and-a-half percent.
 
Moore commented on "nationalization" of banks and quipped that "if that means the government gets to tell us what to do on a day-to-day basis, then we are already nationalized," but explained further that thus far the only bank to become nationalized has been Citi, in which the government has taken a 35-40 percent ownership stake. He sees nationalization not being widespread in coming years but agreed that certainly it will happen to some banks.
 
He believes that Charlotte will come out of this economic downturn quicker than other cities in the nation, thanks to plentiful skilled labor and inexpensive real estate. In contrast, he doesn't see financial services companies playing such a big role in the future of Charlotte and that we need to find ways to diversify our economic mix.
 
When asked to comment on the purported "stress test," for banks' health and future viability he had heard that the first iteration of the stress test formula was so stringent that none of the top 50 banks in the nation would have passed the test. He asserted that a "one-size-fits-all" approach to assessing the health of a bank may not be the best approach.
 
He agreed that there was conflict between the desire (and encouragement from the government) to lend more money and increased regulatory scrutiny: "It's a snowball effect - the more money you lend the more exposure you have, and the regulators don't especially like that right now."
 
Credit card exposure doesn't seem to be as much of a risk for BB&T as for other banks that aggressively market credit cards to non-clients. Moore said that BB&T rarely issues credit cards to those who don't already have a relationship with the bank.
      
   
Head Table: Robert Freeman, George Wilson, Mac McCarley, Trent Merchant, Tom O'Brien, George MacBain;
Invocation: Marilynn Bowler;
Visitors & Guests: Sheila Cottringer; Health & Happiness: Tony Zeiss; Song: David Erdman; Piano: Thomas Moore; Photos: Bert Voswinkel

• Bob Culbertson was photographed while attending the opening reception for the Levine Museum of the New South's exhibit "Changing Places: From Black and White to Technicolor." Congratulations to Carol Hardison, who was voted Woman of The Year for her work for the poor and her outstanding leadership at Crisis Assistance Ministry; Alan Adler extended an invitation to attend the 4th Annual Salute to Heroes hockey game on Sunday. The real fun begins when the Police/Sheriff team faces off with the Medic/Fire team (coached, of course, by Luther Fincher). Tickets are available by calling 704-342-4423.
          
• Will Barnhardt and Ed Wadsworth are putting together another container project, this time to benefit Bogota, Colombia. A wish list of items in need will follow; John Tabor continues to work amazing deals in the club's effort to reach the Million Dollar Mark in Rotary Foundation contributions. President Mac announced anyone participating in this final push to get the club over the mark will be in a drawing for a fabulous prize secured by Marilynn Bowler. Talk to John!

Donald Erwin Haack
March 6, 1930 - March 1, 2009

Don Haack, diamond expert, adventurer, author and founder of Donald Haack Diamonds & Fine Gems passed away peacefully on Sunday, March 1, 2009 following a brief illness. Born in Milwaukee, Wisconsin, Don lived a life consistent with his motto "You've got one life - go for it!" His sense of adventure never waivered and he built a reputation as a world-renowned diamond expert adhering to the highest ethical standards.
 
A talented and engaging storyteller, Don authored three books about his adventures. He spent 20 years abroad as manager and consultant of diamond mining companies in British Guiana and Venezuela, licensed buyer of rough diamonds, and as a pilot with over 5,000 hours of bush flying. In the 1970's, he designed, built and operated excursion boats in Grenada and St. Martin and maintained international gem connections in Europe.
 
Don is survived by his wife, Jan; daughters Janet, Diana and Julie; sons Thomas and Todd; brother Robert, five grandchildren and three nieces. A celebration of Don's life will be held Thursday, March 5 at 2:00 pm at Carmel Baptist Church, 1145 Pineville Matthews Road. Memorials can be made to the Allegro Foundation and The Rotary Foundation.