[Sosfbay-discuss] Bank of America and Republic Windows and Doors

[Wes Rolley]

There has been a lot of chatter about the closing of Republic Windows 
and Doors in Chicago and the role of Bank of America in doing this.  
Most of it has been a knee jerk reaction to the situation for political 
gain without thinking things through very carefully.  In particular, 
much of this comes from those who would curry the favor of the labor 
unions involved.

I think that it is odd to criticize the Bank of America for risky 
lending practices involved with real estate loans and then to turn 
around and criticize them for not lending more money to a failed company 
just to satisfy a social need.  The argument goes that B of A received 
bailout money so they should have made that bailout money available to 
Republic.  If that were the case, why should not the government have 
done this directly and skipped the middleman? 

Bank of America has a lot that it should be criticized for.  It also has 
a lot that it should  be praised for.  Lisa Tailor sent me a notice that 
outlined B of A's new policy on coal and their decision NOT to lend any 
money to energy companies that practice mountain top removal mining.   
Hurray for B of A.

The specific situation in Chicago shows that there is a lot of blame to 
go around.  Not the least is that the company was either arrogant about 
what they could do or was ignorant of their dire situation... or both.  
But, you can not squeeze $$ from a failed corporation and so everyone 
goes after B of A.  

B of A was probably remiss in not having a closer feel for the real 
situation with Republic, so that this would not have been a surprise.  
Still, I do not think that they should have been blamed for not lending 
money to a company that they felt would not be able to pay it back.

These cases are hard.  The news we get is not reliable... only spin from 
both sides.  There is a case to be made here for some sort of moral 
response but it has to be bigger than just the "the bank screwed us to 
go get 'em."

-- 
"Anytime you have an opportunity to make things better and you don't, then you are wasting your time on this Earth" Roberto Clemente

Wes Rolley
17211 Quail Court, Morgan Hill, CA 95037
http://www.refpub.com/ -- Tel: 408.778.3024