Tuesday, December 09, 2008

Republic Window & Door

Republic Window has gone out of business, partly due to the general economy stifling demand for building products, resulting in Bank of America’s not renewing the company’s line of credit.

The sudden shutdown may or may not have violated the WARN act, which stipulates that employees be given 60 days notice of a plant closure. As a result, 200 union employees have occupied the factory, refusing to allow the equipment to be removed, etc.

Gov. “Make Me an Offier” Blagojevich announced that Illinois state agencies will stop doing business with Bank of America, either over the Republic Window and Door business, or perhaps because they didn’t sufficiently line the Governor’s pockets. Bank of America has since caved to Blago’s thuggery, though perhaps they should have waited a day or two before putting up a “blackmail us” banner on their corporate website.

Under the more charitable interpretation, all this is doing is recreating the problem – using political muscle to force the banks to make unsound loans that won’t be repaid later. Some similar thoughts by Jim Geraghty in NRO.