Illinois Gov. threatens Bank of America

[thundley4]

(AXcess News) Chicago - At a press conference Monday morning, Illinois governor Rod Blagojevich (D) said his administration would suspend doing business with Bank of America if credit wasn't reinstated to Republic Windows & Doors, a Chicago North Side business which closed down after its financing was suspended by the bank.
Gov. Blagojevich said the State has hundreds of millions in dealings with Bank of America and that it got taxpayer money from Washington but overlooked those same taxpayers when they were in trouble.
Union workers had staged a sit-in on the factory floor on Friday that drew national media attention and today Gov. Blagojevich stepped in defending the Union workers in agreeing to meet with union representatives and Bank of America.
"The state of Illinois will suspend doing any business with Bank of America until credit is restored to the company," said Gov. Blagojevich.  "We're going to do everything possible here in Illinois to side with these workers."
Gov. Blagojevich said the State would be in Federal Court on Tuesday to try and get the workers the money they're owed.

Link

This is  :censored:BS. Since when is it the governments job to interfere in this manner?  This is not in the public interest as it was when Reagan fired the striking air traffic controllers. I think the Rodster is trying anything and everything to ingratiate himself to his DemBulb base because his ass is in the wringer in this state.

[FlaGator]

It's because of government regulations and the complaint that banks had been too lenient on extending credit that caused BofA had to suspend credit in the first place.

[DumbAss Tanker]

I gether from what was on Fox this moring that there is somewhat more to it, and the workers are not totally in the wrong on this.  The company is caught between a law requiring them to give 60 days notice and pay off back pay (like unused vacation time) on one hand, but BoA that cut them off cold from their credit line without warning so they gave about 4 days notice instead.  Since BoA has a security interest in all the plant and inventory, it has refused to let the company do anything to pay the workers the required severance or operate through the required notice period.  If that's the case, I can see why the workers are pissed, and why the State is stepping in to screw with BoA.

[thundley4]

I gether from what was on Fox this moring that there is somewhat more to it, and the workers are not totally in the wrong on this.  The company is caught between a law requiring them to give 60 days notice and pay off back pay (like unused vacation time) on one hand, but BoA that cut them off cold from their credit line without warning so they gave about 4 days notice instead.  Since BoA has a security interest in all the plant and inventory, it has refused to let the company do anything to pay the workers the required severance or operate through the required notice period.  If that's the case, I can see why the workers are pissed, and why the State is stepping in to screw with BoA.

Normally I would have been watching FNC in the morning, but got distracted listening to some new music.  I wonder if the tightening credit restrictions played a roll as Fla Gator suggested.

I still think the Governor is somewhat grandstanding also.

[Chris_]

It's because of government regulations and the complaint that banks had been too lenient on extending credit that caused BofA had to suspend credit in the first place.

It is never a good idea to play chicken with a semi -- does this goof have any idea how big B of A is and how small a few hundred million of contracts is?

Add to that the cost it will take the state to pull out -- can you imagine how many millions -- maybe hundreds of millions -- to rework every interface to B of A?

It is now symbiotic -- this guy has all the business acumen and knowledge of the new fuhrer's handlers.

[Crazy Horse]

Didn't B of A just buy Merill Lynch...........making them a very large locomotive??

[thundley4]

Blagobitch is another fine example of a Chicago mob democrat, just like Der Fuhrer and his puppet masters.

[Chris_]

Didn't B of A just buy Merill Lynch...........making them a very large locomotive??

Massive.

[FlaGator]

Didn't B of A just buy Merill Lynch...........making them a very large locomotive??

We're a huge company and one of the few over capitalized banks in these bad financial times. That is why BofA was able to by ML and Countrywide Mortgage. You also haven't heard about a lot of lay offs from BofA. In fact BofA attempted to turn down the bail out money but was told they had to accept it in order to protect the identities of the banks that did need the money. If a bank had to ask for cash the government feared a "silent run" on the bank like what happened with Wachovia. Also BofA was one of the few banks that weren’t extending risky credit. I work in the technology side of collateral and credit management for businesses. We what companies like a hawk and try to anticipate problems well in advance of their onset. No one likes being taking by surprise. The only reason that the bank would have suspended credit was the the company had passed a point of no return and no amount of credit would fix.

From what I understand, Republic wanted the line of credit extended so that they could meet their 60 layoff announcement as required by state law. The money would have gone for salaries until the business could be legally closed and BofA would not have been able to recover the money they lost. In my opinion if the state law requires them to give 60 days notice for lay offs then it is on the business to make sure that those funds stashed away somewhere outside of the company's capitalization. BofA should not be responsible for paying this company's salaries in order that they comply with the law.

A couple of tidbits about Republic. They have not turned a profit since 2000. Even in the best of economies they couldn't break even. Also on the day they announced the closing the owners of republic had previously created another company and bought another factory and then moved some of the heavy equipment from the old factory to the new one. Now if the owners have the money to do that, then why don't they have the money to comply with the law?

[NHSparky]

Maybe the Gov can just take another 500K bribe and be done with it.