Monday, December 8
Damned if they do -- damned if they don't
The Bank of America is caught in the crossfire. The governor of Illinois has ordered state agencies to stop doing business with them because B of A canceled the credit line of the crippled Republic Windows & Doors company in Chicago. The governor's reasoning is that if B of A has received bail-out money they should be giving bail-out money. ~ link
I don't often feel sympathy for the Bank of America but they're clearly caught in the middle on this one. The problem is that in order to receive bailout money B of A is supposed to tighten things up and not lend to poor credit risks. The banks got into this situation through careless lending.
It is not the responsibility of the bank to fix this. Republic has to reprioritize and tighten it's own spending so it can pay severance to the workers that are being laid off.