Bank of America is today contending with two separate controversies And wrestling with the state of Illinois and the federal government about each of these issues. It seems that these Governments are now in the business of advising BofA on its credit risk business and its executive compensation plan:
1. Illinois Governor Suspends Business With Bank Of America pending resolution of the Republic Windows & Doors.
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
Excuse me, but what does the Governor know about the terms this loan and the credit worthiness of this business? How did BofA become the villain in this employment problem? Misdirection by Governor, as the employees and union members beef should be with Republic, no?
Senate Majority Leader Harry Reid, D-Nev., urged Merrill Lynch (MER) to reject its chief executive John Thain's request for a $10 million bonus at a time when the bank is benefiting from millions of dollars of taxpayer money through the financial rescue package. The Wall Street Journal reported Monday that Thain requested that Merrill's board pay him the bonus, but that board members are resisting doing so.
I'm happy the Board is fighting Thain's compensation - that's where the battle and discussion should be; I hope they stay strong and deny Thain his millions. Why Reid has inserted himself is pure political posturing.
How is this happening? Nobody could have predicted that politicians would politicize the bailout and all issues emanating from it. Nobody. (insert sarcastic snicker!)
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