Bank of America gets strong armed into making another bad loan.
I brought this up before. Liberals don't want to hear any part into how their political heroes actions were responsible for how financial crisis got started. We all know that it started with the federal legislation of the Community Redevelopment Act and community activist groups putting pressure on banks to make loans to dead beats that had no way in prepaying those loans. Here is a classic example of what I mean but with a twist. The Chicago based Republic window-and-door factory had to go out of business after it defaulted on a credit line issued by Bank of America. The company was using it's credit line as working capital, and once the credit line was shut off it's business couldn't continue. Any normal person with somewhat common sense would have probably blamed the way the company was being managed or the down turn in the economy right? I did say normal people. Apparently the bad guys in all of this is Bank of America, because they had the nerve to follow their lending practices. Once the former employees of the Republic Windows Factory found out that they wouldn't be getting their pay, vacation time and severance. They decided to have a "sit in" and not leave the premises until they got their money. Well this stupid story actually made national headlines. It made such headlines that the messiah Barack Obama made a statement claiming that the former employees were right in what they were doing. Just a quick update, the grand total of business experience Obama has is still zero as of December 9th, 2008. I'd just though I would mention that. With all of this madness going on somehow Bank of America was made out to be the villain because the windows company couldn't pay their employees. So the Governor of Illinois who is now an arrested jailbird Rod Blagojevich, at a news conference in front of the Republic Windows & Doors factory, called on state agencies to suspend business with Bank of America. There is a word in the dictionary to describe perfectly what Governor Blaojevich did to Bank of America.The word is "extortion". Blaojevich used intimidation to get Bank of America to comply with something it had nothing to do with. As of today Bank of America said "it was "prepared to provide a limited amount of additional loans" without specifying the amount. The bank said it would offer the additional financing "despite the fact that Bank of America is not obligated to pay Republic's employees or make additional loans to Republic." Does this all sound familiar? Banks being forced by intimidation tactics to make bad loans. Think about it this way. How is Bank of America going g to get paid back this additional money when they never got back the original amount they loaned Republic Windows Company in the first place? So Bank of America is going to LOSE MONEY TWICE. This is how the whole sub prime market got started. Banks that didn't play ball were threatened with bad press of "discrimination" or "lawsuits". Some habits die hard it looks like.