Illinois Governor Suspends Business With Bank Of America

Illinois Governor Rod Blagojevich announced Monday that he is asking all Illinois government agencies to suspend business with Bank of America. Blagojevich contended that Bank Of America received a multi-billion dollar bailout from the government and should accordingly restore credit to the Republic Windows & Doors company in Chicago

Watch Blagojevich here:

Officials from Bank of America, which canceled the company's financing, are scheduled to meet Monday afternoon with Republic officials and union leaders.

Read more about the protest:

About 200 workers who lost their jobs last week with little notice have been occupying the plant around-the-clock in eight-hour shifts, said Fried said. About 60 were inside early Monday.

Rep. Luis Gutierrez said Monday's meeting would address the workers' concerns.

Company officials have not commented since the sit-in began Friday, and have not responded to calls and e-mails. Gutierrez said company officials had signed a waiver permitting the opening of its financial records at the meeting.

Republic Windows and Doors told the workers on Dec. 2 that they would be out of work by the end of the week.

Fried said the company told the union that Bank of America had canceled its financing. The bank had said in a statement that it wasn't responsible for Republic's financial obligations to its employees.

Click here for the latest news on the factory sit-in.

Comments

[ToTink]

12:02 PM on 12/10/2008

Please watch Paul Grignon's 47-minute animated presentati­on of "Money as Debt" which tells in very simple and effective graphic terms what money is and how it is being created. It is an entertaini­ng way to get the message out. The Cowichan Citizens Coalition and its "Duncan Initiative­" received high praise from those who previewed it. I recommend it as a painless but hard-hitti­ng educationa­l tool and encourage the widest distributi­on and use by all groups concerned with the present unsustaina­ble monetary system in Canada and the United States.

[cpaynter]

09:12 PM on 12/09/2008

What this Blogo nonsense demonstrat­es is that not only is a crook, but a typical big government idiot. Just ask yourself, "why was/is the banking industry in need of government assistance­?" The answer is simple: the banks (under intense government pressure) lent money to people who couldn't pay it back. So what does Blogo call for? Bank of America to lend more money to a failing business, which will not be able to pay back the money. Brilliant.

Oh, and by the way, I have a house full of windows from Republic. There is a reason the company is going out of business. Their products suck. And failure is what does and should happen to such companies in a capitalist economy. Republic should fail, and there's no reason for the government to throw (our) good money after bad, or strong-arm Bank of America into doing the same.

Chris.

[bachmantsk]

02:36 PM on 12/13/2008

It's always so heart warming to hear people such as yourself stick up for His Highness Sheikh Mohammed Bin Khalifa Al-Thani . Oh yeah, he's the majority owner of Bank of America. The old sheikh has made a few bad business decisions recently, but never fear, taxpayers of America will bail him out.

[hosshoss777]

05:31 PM on 12/09/2008

I read through these comments, and of course the stories about Gov B today and it seems they're all crooks one way or the other, the Company for being broke, the Bank for not wanting to help and the Governor for what? trying to make the bank help the broke company or trying to get paid for Obama's Senate replacemen­t or whatever? And of course there's a Union involved.

I'm confused, I'll never figure just who's in whose pocket.

[lstl4]

01:43 PM on 12/09/2008

He should have stayed at home. Now the attention is turned away from window business employees who have a right to go after the banks to this loser. I hope he gets what he deserves, and the employees win out over banks who got their balilout but dont want to help the "little people"..

[mudbones]

03:06 PM on 12/09/2008

How can it be the banks fault? Who is going to pay the bank back??? How many of these loans should the banks continue to give? I feel for the worker, its the owners of the company who are at fault. The bank has been trying to work with them for months.

[LynnW49]

12:01 PM on 12/09/2008

Too bad it took a crook, or at least a guy with seriously low approval ratings and alleged questionab­le dealings, to stand up to crooks. I actually thanked Blago for ditching the state's BofA dealings. . .Didn't realize he might be cut out of the same mold. So now it is time for more credible officials to stand up to BofA. . .

[pollwatcher123]

12:22 PM on 12/09/2008

He hasn't been convicted yet of anything. In fact, one could argue that Sarah Palin is more a crook than Blagojevic­h. She actually was found to have violated her post in using it to pursue personal vendettas. She has been found to have violated ethics rules regarding state finances. But none of that was illegal in Alaska. I bet she broke some federal laws.

But no US Attorneys were interested in taking THAT case.

She even plead guilty when she was in city council to criminal negligence involving commerical fishing violations­. Blagojevic­h is a cleaner cat than her so far. Don't be so hasty condemning an innocent man just because the Jackbooted Bush-thugs made a media spectacle out of him today.

[HappyIdiot2008]

12:35 PM on 12/09/2008

You're right. This is GWB's Justice Department­. I'm concerned about what they will do before Inaugurati­on Day.

[amyeom]

11:37 AM on 12/09/2008

Is anyone surprised that ONE DAY after this story, he is arrested on "corruptio­n" charges? ppsh

[pollwatcher123]

12:07 PM on 12/09/2008

Not surprised in the least. Governor Blagojevic­h stood up to the Banks, and the Banks sent in the Fed to make a political spectale of him. They have nothing that will stick. They had been debating whether to bring charges or not all this time. Why pick today?

Cause these are the United Banks of America. And when a powerful governor challenges their power, he finds himself being led away in chains as the cameras roll. Its a warning to all others.

By the way -- where were the Feds when it came to Palin's corruption charges?

'Nuff said.

[shelsay]

02:07 PM on 12/09/2008

Not surprised at all...hell­o this pattern is getting really familiar - Spitzer against deregulati­ng banks, now Blagojevic­h boycotting Bank of America. These banks have more of a hand in this corruption than anyone is willing to report or admit.

I don't think these officials care about the corruption or scandals, they care about pleasing the people running the banks.

[thegirlnextdoor]

11:28 AM on 12/09/2008

Bank of America has always been a bad bunch. and this is just the icing on the cake. You give banks money and it disappears into their deep pockets. You give the auto industry money and everyone goes back to work! Get it right!

My understand­ing is that banks are not lending to anyone right now and that perfectly fluid companies are being denied credit to meet their weekly and monthly obligation­s.
And, banks are the ones who really blew it with all the supposed fast profits on subprime mortgages.

p.s. ($1800 is not a big monthly mortgage payment for an average house!)

[mrbanker]

01:06 PM on 12/09/2008

p.s. ($1800 is not a big monthly mortgage payment for an average house!)

hum... glad I don't live in Chicago. I don't even bring home $1,800 a month. I bring home $1,250/mon­th after taxes. My rent is $375 a month. No wonder they are barely getting by. I would move to a smaller city.

[mudbones]

03:09 PM on 12/09/2008

finally someone with sense. Most of the people on this blog would have the banks given out money and expect nothing in return. That is exactly how we ended up in this mess. So how many companies do we "loan money too that cant pay it back, what is the criteria? How can I get some?

[ploopy]

11:20 AM on 12/09/2008

ha ha somebody tell me... he does the b of a thing, next day? BLAMMMO!!! what's it all about? ha ha GOOD LUCK america, good luck obama et al.....xox­oxox

[jhoughton1]

11:11 AM on 12/09/2008

Uh, Rod? We gave the banks that money so they could use it WISELY. Have you told us anything about RD&W that convinces us -- or the bank -- that the company is credit-wor­thy? That said, I do agree that the banks are misusing the bailout money and that a bailout under Bush, with Bush's people running it, was destined to be corrupt, incompeten­t and ineffectiv­e -- just like everything else he's put his hands on.

[bachmantsk]

02:43 PM on 12/13/2008

We gave the banks taxpayer money to unfreeze the credit markets that businesses have come to rely on to pay monthly payroll etc. That was how it was sold to the American taxpayers. That's how the taxpayers should demand it be spent.

[Maxplayer14]

10:34 AM on 12/09/2008

Please tell me how this is BoA's fault? They should lend money to a company that can't pay it back? Isn't that what got us in this financial mess to begin with? Lending money to people who couldn't pay it back? Yet all you hypocrites on her won't them to just do it anyway, yet bitch and whine about the financial mess... Brilliant!­!!!

[pollwatcher123]

11:52 AM on 12/09/2008

Republic not only COULD pay its debts, but its owners USED the credit-wor­thy Republic assets to get ANOTHER Loan to start a NEW company building doors and windows in Iowa (a non-union state). So, lets get this straight. Bank of America suspended lending to Republic, owned by the Gillmans, in a union state. But then Bank of America continued lending to Echo LLC, owned by the Gillmans, in a non-union state.

Its not Bank of America making bad loans to bad companies. Its Bank of America, under direction from Uncle Paulson, to bankrupt union companies and to divert those funds to non-union companies. Even when both types are owned by the SAME EXACT PERSON.

And of course, when a Governor gets in the way to champion the cause of Main Street against the interests of Bank of America - what happens?

As Ploopy says above, "BLAMMO!" You betcha golly gosh darnit dangit. These are the United Banks of America (not states).

[mudbones]

03:10 PM on 12/09/2008

You've been watching too much TV

[bachmantsk]

02:45 PM on 12/13/2008

It's always so heart warming to hear people such as yourself stick up for His Highness Sheikh Mohammed Bin Khalifa Al-Thani . Oh yeah, he's the majority owner of Bank of America. The old sheikh has made a few bad business decisions recently, but never fear, taxpayers of America will bail him out.

[MarcosV]

10:09 AM on 12/09/2008

I am in the window business and in Chicago. Absolutely under no condition should BofA extend credit to Republic to start making windows again. Republic has been failing since they took a 4 million dollar hit by selling windows to Pacesetter who then went out of business and left them unpaid. Once Republic closed they are officially dead and can't come back anymore. They have lost all their dealers and no one is going to buy windows from them again knowing they will not be able to get parts in the future when they fail again. Their lifetime warranty is worthless and none of us old dealers will buy them again.

And, ...believe me when I tell you.... Republic doesn't want their credit restored. In private they are yelling NO! NO! NO! when gov't officials are working to get their credit restored. The owner has already bought out the Traco Windows residentia­l window division and is starting up in Iowa under a new name, Echo Windows, where they will have non-union workers and a better chance of making money.
Republic has been in financial trouble for a while and they are now dead and buried, right where they need to stay.
The victims in all this are the tens of thousands of homeowners across the country who no longer are going to have their lifetime warranties to get parts for their windows anymore, not the Union workers who will go on unemployme­nt until finding new jobs.

[pollwatcher123]

11:54 AM on 12/09/2008

That "unemploym­ent" is not the equivalent of a salary.

Don't you think the owners of Republic should be blackliste­d with some kind of "Corporate FICO" score that will keep track of all their prior failed ventures? That way, they can't do the same nonsense to another community and to other hard workers.

[shelsay]

02:17 PM on 12/09/2008

that doesn't let B of A off the hook. Why are they calling the loan in Illinois and not in Iowa - same management and everything­? a little suspicious don't you think?

[mudbones]

03:12 PM on 12/09/2008

how do we know they financed Idaho.... you all are crazy

[Workinwithu]

08:39 AM on 12/09/2008

BofA are legalized crooks!

We are waiting to see them fall and laugh the entire time.

[Writeonwater]

11:33 AM on 12/09/2008

I will recall something Lord Russell 3rd said from memory. You cannot help the oppressed without facing off with the oppressor. I have no way of knowing whether or not this governor is guilty of impropriet­y and neither does anyone else. However, the fact that these many accusation­s and arrest has come on the heels of him using power against power makes me skeptical. If he is guilty certainly he should be punished. Yet, we live in a time where people can be paid to say things as absurd as hot is really cold and vice verca. If I were willing to pay $10,000 to find out or create something about you would that be enough? At the risk of using too strong and cynical an example and scaring people, do you possess in your own home two components of a binary chemical weapon and the means of combining them in a fashion that could poison an entire grade school? Or, do you have a bottle of ammonia and a bottle of bleach under your sink along with a bucket.

[Blabrmouth]

07:55 AM on 12/09/2008

So BOA is supposed to lend to a company that is insolvent because we gave them $25b? Color me confused!

[LHoney]

08:35 AM on 12/09/2008

It is my understand­ing that this company is not insolvent and actually has orders waiting to fill...

[CriticalDune]

09:08 AM on 12/09/2008

The owners have been very camera shy. According to the union, Bank America is positively contributi­ng to the solution. It appears to me that the owners are the guilty parties here. Orders don't mean squat if a) they can't support the fixed costs of the plant or b) are more wishful thinking than firm. The sad reality is that spec housing developmen­t fueled by e.z. financing was likely the bread and butter of of this company and it's over.

[Blabrmouth]

09:29 AM on 12/09/2008

If that is the case, then why would BOA be taking the steps they are taking? Something is fishy here!

[mamala4]

07:42 AM on 12/09/2008

As an Illinoisan­, I can tell you this is the only smart thing this Gov has ever said or done.

[GuidedByEwoks]

11:08 AM on 12/09/2008

and the last thing.

[bachmantsk]

02:54 PM on 12/13/2008

And yet it might go down in history as the bravest and most brazen stand that an elected representa­tive has ever taken on behalf of the people against the world banking cabal. Talk about David against Goliath. Only this time David got stomped.

[ChicagoSuz]

03:12 AM on 12/09/2008

If the Republic situation hasn't been resolved by then, there will be a big rally in Chicago on Wednesday at noon. Don't have the location yet...