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BB&T's Allison: A Free Market Could Have Prevented This

He established a charitable foundation through BB&T in which to donate to local colleges and universities, but stipulated that those schools incorporate Rand's philosophies as part of the curriculum. The move has generated a debate on whether donators should have the right to influence school curriculums.

As the financial crisis takes its toll on both healthy and troubled institutions, Allison is highly critical of what he suggests is an overregulated banking industry. He says mistakes made by the Clinton and Bush administrations led to an inevitable crash in the sector. More recently, the Treasury's bailout efforts though the Troubled Assets Relief Program, or TARP, has been misguided in its approach to the problem, he says.

"This is potentially the worst economic correction that I experienced in my career," he says. "What's unique in this correction was the panic created unfortunately by the Treasury, the Fed and [former President Bush] in October."

AUDIO: Allison gives the bailout an 'F-minus.'

Allison takes issue with the government's ability to produce -- "out of the blue" -- $700 billion for the bailout package; the "incredible arbitrariness" of saving some banks and letting others fail; and the lack of consistency within the plan so far, he says.

"Markets hate that kind of stuff," Allison says.

'A Bailout of Poorly Run Financial Institutions'

As the Treasury was putting together the components to the original bailout package in September, after the failure of Lehman, the sale of Merrill Lynch to Bank of America (BAC), and the failure of Washington Mutual, sold to JPMorgan Chase (JPM), Allison wrote a letter to several members of Congress discussing his opposition to the original plan.

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