Bank of America faces possible cutoff of business by State of Illinois (relating to worker's sit-in)

[Robbien]

Source: Bloomberg

Illinois Governor Rod Blagojevich said today the state would suspend its business with Bank of America Corp. until the lender restores credit to the shuttered Republic Windows & Doors company in Chicago where workers are staging a sit-in.

Blagojevich commented at a news conference after meeting with employees who have stayed at the factory since Dec. 5, when it closed after the bank canceled its line of credit. Illinois does “hundreds of millions of dollars” in business with the bank, he said.

“We’re hoping negotiations this afternoon with the bank and company are successful and they can make things happen,” Kelly Quinn, a spokeswoman for Blagojevich, said. “The governor believes we should be putting people to work, not sending them to the unemployment line.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=akrsdg5ID7aM&refer=home

---

The governor said that because Bank of America received a bailout for the purpose of lending and/or extending lines of credit to business and did not do so to Republic Windows and Door Company he was taking the action.

Every once in a while Blago gets it right.

[Sebastian Doyle]

1. Thom Hartmann is talking to a union guy from Illinois right now about this

If I didn't already despise Bank of America, this would do it.

[Tandalayo_Scheisskopf]

2. How much has BoA received...

In federal bailout monies?

[sarcasmo]

28. 25 Billion, and instead of loaning money they closed this companies line of credit.

[closeupready]

3. I don't like him, but I think this is correct.

Even the Bush administration has said, they are supposed to be LENDING. THE. MONEY.

[Robbien]

8. This is similar to Ryan and his suspension of the Death Penalty

Ryan was hoping to get public support so that the courts would stop going after him.

The papers are right now saying that the justice system got people on Blago's staff to wear a wire. By making this move, Blago could be just courting public opinion.

But who cares, this is the right move.

[Critters2]

24. Yep, even a broken clock is right twice a day. nt

[murielm99]

33. He's right more often than he gets credit for.

He was right on birth control. He told Illinois pharmacists that they could not refuse to fill b.c. prescriptions to women if their poor wittle consciences were offended by b.c. Someone in the pharmacy had to honor the prescription.

He's right on kid's health care, too, and mammograms for women.

It is sad that he gets no credit, or that those things are forgotten quickly. There are some in Springfield who are as bad, or worse than Blago.

Have you ever tried to sell the Democratic party to persuadable voters in red areas? Here in Illinois, Springfield politics is a deal breaker many times. Never mind that the republicans in Springfield are just as bad, or that the last republican governor is sitting in the jailhouse.

I am working from the inside to change things, but more powerful people than I have been broken by Illinois corruption.

[DollyM]

38. say what you will but he has done some good things . . .

We have medical cards through All Family/All Kids that have literally saves our lives. My husband is diabetic and has been hospitalized twice in the last month. Without this program we would have been at the mercy of the hospital, which I have found is not very merciful. We will lose our All Family benefits when our son turns 19 at the end of January. Then I don't know what we will do . . . we are both unemployed and with his diabetes complications, he may not be able to work again.

[IsItJustMe]

53. I agree with your sentiment. The newspapers in Illinois can chew a half way decent person up and

spit them back out. I don't think Blog is nearly as bad as the conventional wisdom would lead us to believe.

[tritsofme]

60. So he may be a crook, but he's our crook?

No thanks.

[mopinko]

58. good on him. and you are right.

dems hang for misdemeanors, rethugs get away with murder. or in the case of ryan, get a slap on the wrist when 6 kids burned to death.
blaggo has been hamstrung because he is sitting in lisa madigan's chair.

[OswegoAtheist]

18. Damn.

How bad do you have to fuck up when *'s administration gives you the stink eye? How horrible a company do you have to be for Cheney to say, "Guys. Really."

Oswego "This brings the total number of things Bush and I agree on to 3" Atheist

[IsItJustMe]

51. Regardless of weather you like him or not, right action is good on its own merits. I applaud him.

[drm604]

4. Wow!

If the feds won't require the banks to honor the spirit of the bailouts then maybe the states will. Interesting times.

[WHEN CRABS ROAR]

5. Go for it Gov.

[scytherius]

6. Pity the Feds can't show as much guts and stand up to the banks. n/t

nt

[Kokonoe]

7. I don't understand, didn't Bank of America explain life as we know ended

If they did not get the bailout.

[crispini]

9. Damn good idea. Maybe we should all threaten to pull our accounts with them. nt

[sarcasmo]

20. My wife and I pulled ours today.

[Raksha]

45. I'm seriously thinking about it...

and I've had my B of A account since 1980.

[LeftHander]

10. Pretty clear the bailout is only for status quo maintenance...

bastards

[LuckyLib]

11. Banks that have received bailout $$$ are sitting on it, not trusting anyone else's books or ratings.

But with bailout money, they should be REQUIRED to get back on track and support their businesses. Good on Illinois! Yes!

[eilen]

12. This is inspiring.

I think I'll call up B of A and close my credit card accounts with them.

[Lugnut]

13. Good.

It's about time somebody start fighting fire with fire.

[JerseygirlCT]

14. Good! nt

[tritsofme]

15. Anything to get his imminent federal indictment out of news.

Excuse me for giving this crook no credit for anything he does.

[madrchsod]

23. no shit....13% approval rating...

he`s cut all but one state park out here in northwest illinois. people are fucking pissed. it`s going to cost my area millions.

[murielm99]

34. Someone called me the other day about the

county Democrats' Christmas party. He asked me how we could have a party "at a time like this."

I thought, "What, Christmas time?"

He said he could not support Democrats at all because the parks are closing. I told him that we are just as unhappy with the park closings as he is. I promised to pass his opinions on to the appropriate parties.

We are still going to have a party. Maybe by next year there will be more reason to celebrate. OTOH, maybe we will all be so screwed that we cannot scrape together the money for a party.

[IsItJustMe]

54. It must be a rough gig being god.

[tritsofme]

59. Defending Blago is defending the indefensible. nt

[tritsofme]

65. Not to toot my own horn.

But I will.

[jetphixer]

16. BofA

I refuse to use BofA and will not use >CHANCE<better known as citicorp!!! I just prefer Credit Unions an it is as close to local as i can get.. Just some thoughts in passing

[alfredo]

44. I'm with the Postal Credit Union. I love it. BTW, BOA has stopped doing

business with companies involved in mountain top removal, so at least they do the right thing every now and then.

[natrat]

17. sweet, these fucking banks are wrecking bussinesses on purpose

[slackmaster]

35. Why would they do a thing like that?

Who really wins when a business goes under?

[sarcasmo]

19. Finally, a State standing up to the Banking Industry. The Federal Govenrment handed them money to

lend, instead they call in their credit lines and do the exact opposite they were suppossed to be doing. This may be a turning point.

[Riverman]

31. Yes and Right after Chase took over WAMU - the largest Bank

Failure in history - WAMU raised my credit card rate by several points, lowered by credit availability AND raised my minimum payment, even though I have been paying consistently above the minimum for some time. Will look forward to paying off that one and for now won't use that card anymore. So much for stimulating the economy Mr Paulson! You Bastard! Yesterday CNN reported record credit card profits for the banks from fees! in the multi-billions!

OK - Obama, Biden, Dodd, Reid, Pelosi etc - how about making a condition of getting fed bailout money that you make the banks lower credit card rates to +1% above prime for five years, and stop giving credit cards to the credit unworthy - that will stimulate the economy more than anything you could do.

Next BIG economic collapse will be due to huge defaults on crdits cards! Wait for it!

True Story - in June -08 after erroneously receving several NSF fees for small ATM's on my checking account while on vacation, I went to the local branch to complain to the manager who gave me the "corporate" policy that he could not fix the problem - which they ultimately fixed - I told the pathetic fellow that he should immediately find a new job as WAMU was going down. My reasoning was because of their horrible customer service and their sub-prime portfolio mess! Little did I know how prescient I was! However, I moved my banking to B of A! Uhhgggg! Not so bright after all!

[sarcasmo]

21. Go to this site and leave them some feedback. Bank of America site, feedback icon lower right.

http://www.bankofamerica.com/contact/?statecheck=MI&page=

[louis-t]

32. Done. I threatened to cancel my accounts

if they don't "resolve the situation to my satisfaction." What a weird link on that page. Font is huge.

[madrchsod]

22. oh no.....our govenor speaks!

maybe his 13% approval rating will go up a few points.

[TomClash]

25. Perhaps the Illinois Attorney General should investigate

Looks like predatory lending to me!

[mucifer]

49. actually, she is investigating. Oh and the city of Chicago is considering pulling out!

from suntimes.com :

Aldermen demand City Hall stop working with Bank of America
Blagojevich halts state work with Bank of America over sit-in
Recommend (15)
Comments

December 8, 2008

BY FRAN SPIELMAN City Hall Reporter

Chicago aldermen turned up the heat at both ends today on behalf of laid off workers at Republic Windows & Doors whose sit-in at the shuttered Goose Island plant “struck a chord” heard around the nation.

Flanked by union leaders at a news conference, more than a dozen aldermen demanded that City Hall divest itself of funds deposited at Bank of America — and stop approving zoning changes sought by the bank and its subsidiaries — in retaliation for the bank’s decision to cut off Republic’s line of credit.
» Click to enlarge image
Gov. Blagojevich visits with laid-off workers at Republic Windows & Doors on Monday. Blagojevich called for state agencies to stop doing business with Bank of America until the bank restores credit to Republic.

Bank of America would also be prohibited from riding the gravy train of pinstripe patronage generated by city bond deals under an ordinance drafted in response to the Republic shut-down. snip

[Jester Messiah]

26. Ah, perhaps the governor has finally understood...

Government is accountable to the voters, not to the corporations. Let's hope more politicians soon see sense.

[Riverman]

27. Follow the Money: Paulson got BofA totake over Merrill-Lynch.

That gives Merrill bank status and access to the Treasury's "credit window" or as Paulson says "credit facility." Meaning they can now borrow funds from the Treasury at prime rates. Now we have an investment firm getting cheap federal taxpayer dollars. Are they lending to companies to stimulate the economy! Hell No! The CEO of Merrill - Thain wants his 2008 $10,000,000 BONUS paid for from those bailout funds!

Now, B of A cuts off credit to a company manufacturing American made products and thus resulting in the closing of a plant in Chicago of American workers. Yes, this is how these pigs operate! Surprise! Will start looking for another bank to move my paltry sums from B of A.

TIME FOR A RUN ON B of A!

[Kolesar]

29. I don't have any account with B of A

Thanks for the summary!

[earcandle]

39. Go Gov!

Its about time some people stood up to these banks!

[Grateful for Hope]

30. Wow. This is excellent

So, there really will be consequences for receiving a bailout with tax-payer money. Governor Blago is to be commended.

[lonestarnot]

36. Ain't that just too fuck'n bad!

:D

[craiga86]

37. This is crazy to blame BoA

They bail out Countrywide Financial and Merril Lynch so that the taxpayers didn't have to. Remember, they have been criticized for "paying too much" for both entities because if they would have just waited a day or so, they could have gotten a sweetheart deal like Citigroup almost had with Wachovia. Remember, they were set to pay $50B for Merril lynch Sunday Night when Merril Lynch was expected to go down to Zero by the end of the next day.

Then, BoA decides to cancel and restructure several thousands of bad mortgages that the prior company (countrywide) had with many of their customers and just wrote-off several billion in losses.

When the bailout came into the picture BoA said they did not need the 25 billion, but were told by the Fed that they had to take it because all of the other big banks were set to receive it.


Now...this company gets run into the ground by their CEO like many of these Banks and other corporations like GM and what do they do to fix the problem? They point the finger at the big bank. That's such a bailout of a solution. Banks are such an easy target....does anyone question the leadership of this company?

[Robbien]

46. Republic Windows was profitable, but BoA decided it wanted to keep bailout money for itself

and cut off Republic's line of credit. Republic had a great credit rating.

Like many of these bailout banks, BoA has decided not to loan out cash instead they continue to use the money to buy out other entities or continue gambling it on the market. Lending out cash at single digit interest rates just doesn't cut it for these bailout banks. They want the bigger returns of ponzi buyouts and investments.

But we gave them the bailout money to lend, not to play with. So BoA is at fault. Republic was operating a profitable business but all of a sudden they get a notice from BoA that their cash was being cut off.

BoA is the villain here.

[riderinthestorm]

55. Actually, the picture is a tad more complicated than just BOA's fault.

The CEO of Republic was in the midst of re-structuring for a secret move to Iowa. The guy was going to close the Chicago plant and move to Iowa (right to work state doncha know?) and was in negotiations with BOA to do so when that deal fell apart.

THAT is the line of credit that "dried up". Yes, Republic was profitable in Chicago but the CEO of the firm was in the middle of trying to move out in the middle of the night AND cut off the former employees without their notification or proper severance.

BOA and the Republic CEO are culpable here. It's interesting that NOONE is interviewing the CEO of Republic isn't it? Things aren't as clear cut as we would like. BOA's line of credit to the CEO was contingent upon the move which is why BOA is denying any responsibility for paying out the severance. When they withdrew their credit offer for the move, the CEO closed the plant blaming BOA.

I repeat, BOA is culpable, it's just that the CEO was also trying to act illegally and is just as much of a villain as the bank.

[brentspeak]

56. That was a useful summary, thanks.

[katanalori]

57. Thank you!

whew, someone "gets" it!

[Robbien]

61. Are you sure the deal for Iowa fell apart? They announced they are doing business

in Iowa. Republic Windows CEO's wife was set up as the new head of the newly formed Echo Windows. Echo Windows bought out Traco Windows on the same day Republic Windows closed up shop.

Dec. 4, 2008: Republic Windows announces closing.
By Mary Ellen Podmolik | Tribune reporter: “Republic Windows & Doors will shut its doors Friday, causing about 300 workers to lose their jobs..”

Dec. 4, 2008: Echo Windows BUYS a division of window manufacturer TRACO and a factory in Iowa.
“TRACO has announced the sale of its residential vinyl replacement division to Echo Windows LLC. Echo Windows will assume all TRACO residential vinyl manufacturing and sales operations, and will continue manufacturing TRACO’s Sienna Series and Power Two composite vinyl/aluminum windows in the Red Oak, Iowa, facility, which was purchased as part of the agreement.

http://communityorganizer.wordpress.com/

Yes it appears you are right. Both BoA and Republic Windows are to blame.

[riderinthestorm]

62. The plot thickens....

Yup, it appears (in fast moving news cycles) that now even other aspects of the situation are relevant....

Bottom line though: Republic Windows and BOA are trying to weasel out of government mandated laws regarding notification and payout of severance benefits.

While I'm grateful it appears this American company is choosing to stay in the US, their business practices are particularly heinous.

[craiga86]

64. ....

BoA is the same company who is in the process of building the biggest Green building in the world in NY City.

Ken Lewis - The same CEO who shouted out in a room of 50 CEO's that those who opposed the $700B bailout simply because of the limitations of CEO salary pay were and limitations against golden parachutes, quote were "out of their minds if this was the only reason that this deal wasn't getting approved"

The same company that cleaned up the faults of the company they purchased beforehand, Countrywide and settled several lawsuits to pay money to people facing potential foreclosures and those who had already been foreclosed on. Most other companies would have stretched the litigation on to avoid paying anything out at this moment in time. In additiona they have restructured the mortgage payments of lenders in order to relief their short term finances. Something many other Big Banks have fought against and refused.

BoA is the most progressive bank and the closest alley to the opinions supportered by those of this board.

I can't believe the degree to which people on this board will attack a company just because their a big bank, WITHOUT knowing the facts.

If we expect Banks to give loans to anyone, then GOOD LUCK getting your taxpayer dollars back. As a Democrat who has read (more than I've posted) these boards since '04, this display of jumping on the bankwagon to attack the all-to-easy villian (The Big Bank) disgusts me to the greatest degree.

Go ahead and kill alleys like this in the industry and see what you get when these guys go down....seriously....

[happygoluckytoyou]

40. in a related story--> SOME DEMOCRATS HAVE BORROWED BALLS DURING THIS RECESSION...YAHOO!!!!

[SOS]

41. "the state would suspend its business with Bank of America"

An OT thought after reading this thread:

This could be the way to go in fighting the usury these banks are perpetrating.

Example: In NY loansharking starts at 16%. Anything above that is a crime in this state.
We in NY demand that banks comply with our usury laws or the State divests itself from the non-compliant bank.

Time to write to my State reps.

[jeff30997]

42. Next synonym of parasite:

Banker.

[Heywood J]

43. BoA are bastards - known that for years. Time for a run on them indeed.

If you've got accounts or cards that can be transferred and a suitable alternative, now's the time. See if anyone will give you "ex-BoA" specials!

[ksimons]

47. would love to have seen the looks on those folk's faces hearing this news

just imagine the joy!

[tinrobot]

48. I've decided to close my BofA business account this month,

I refuse to do business with such a company. As soon as the outstanding payroll clears, they're gone.

[IsItJustMe]

50. Give em' hell Blog.

[Doremus]

52. If that doesn't work the union should organize a campaign

for union members everywhere to take their money out of the anti-union bank.

If I had any $$$ there it would already be gone. :grr:

[IndianaGreen]

63. Republic Windows and Doors is planning to move its plant to Iowa because of cheaper labor costs

The plant closing was precipitated by Bank of America’s refusal to extend any more credit to the company, despite the fact that B of A has received $25 billion in bailout funds. These billions were supposed to help relieve credit shortages and help sustain jobs. Instead, the banks are using taxpayer dollars to merge into larger banks. Bank of America and JP Morgan Chase are the two banks that invest in Republic Windows and Doors. The workers are owed an average of 75 days’ pay and vacation. Companies are bound by federal law to either give 60 days’ notice with pay, before a plant closing or layoff of 50 or more workers.

It is reported that Republic Windows and Doors is planning to move its plant to Iowa because of cheaper labor costs, and to get out of union obligations with the United Electrical Workers Union. Workers across the country are paying a heavy price for the bank’s and corporations’ theft. It’s time for the bankers and companies to pay, NOT THE WORKERS!

http://answer.pephost.org/site/R?i=0EoW0gfWiuBO0A5Ami_CLg..