Illinois attempts to blackmail Bank of America (NYSE:BAC)
Today's Financial News - Posted December 9, 2008
This is a big day for Illinois. Not only was its governor and his chief of staff arrested, but the state is working to blackmail Bank of America (NYSE:BAC) out of millions of dollars.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): This country has made an incredible ideological shift in the past three months. I cannot help but think there is a deadly cliff at the end of this unexplored road. It is a scary time for patriotic American.
There is a little-discussed headline buried deep inside the nation’s financial newspapers. While the front page is covered with stories surrounding the Detroit bailout, readers brave enough to dig deeper will read about Illinois’ untraditional battle against Bank of America (NYSE:BAC).
The state, whose governor was just arrested on charges of selling a Senate seat, has renounced all of its ties with the bank. Bank of America lost the state’s business because of a decision it made to cut Republic Windows and Doors’ line of credit.
The bank realized it was in jeopardy of losing money, so it took natural defensive action to shield itself from the family-owned manufacturing business’ financial troubles. Bank of America did what any soundly operated business should and would do.
The death of independence
Apparently, the Illinois government is against capitalism. It is doing its best to force the bank to reinstate the line of credit so the now-defunct window manufacturer can give its former employees a severance package.
Bank of America did not break any of its contracts and it certainly did not do anything illegal, yet the state’s government wants the bank to risk its bottom line to cut the factory a break. Illinois is diverting millions of dollars worth of revenue away from the bank until it cooperates.
It is pure blackmail.
Making this story even more complicated is the fact that Bank of America recently cashed a $15 billion check from Uncle Sam’s TARP fund. That means Washington is surely going to see this as an invitation to step into the ring.
Once upon a time, this country was based on freedom to make our own decisions and run our businesses in the most prudent manner we could independently manage. But now, state and federal governments are finding it necessary to intervene whenever we make decisions that are not in step with their own politically motivated ideas.
We are treading in shark-infested waters. As the blood begins to spill, the nation will create a feeding frenzy it has no way of stopping.
Next Article: The industry the recession will destroy
3 Responses to “Illinois attempts to blackmail Bank of America (NYSE:BAC)”
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December 9th, 2008 at 1:03 pm
Looks to me more like the Bush administration is defending its friends in the banking business.
December 9th, 2008 at 2:11 pm
Yeah, damn the workers. The government gave BAC assistance to survive. Now you complain that BAC won't allow these workers to gain benefits owed them. So big banks can get assistance but not workers. You delude yourself already by thinking we live in a capitalist country….
December 10th, 2008 at 10:05 am
Did anybody not notice that Republic wasn't really out of business, they were just relocating to Iowa where they would have cheaper labor? Oh, but let's not burden ourselves with the facts. The company is running to lower its costs and got caught. But since they don't have deep pockets it's far easier to go after the banks. And lest any of you idiots forget, Bank of America was forced by the gov't to take the money, they didn't ask for it. But again, why burder yourselves with the facts. None of you will be happy until we live in a Socialist state.