Shoot, he's only talking about pulling $8 billion in state-controlled money because a bank won't go easy on a business borrower who can't pay. What's the big deal?
Well, the story involves the company that makes suits for President Barack Obama (pictured at right). Beyond that, the union at that company is citing the US Treasury Department's Troubled Assets Relief Program (TARP) as a reason that company's bank should in essence bail it out.
You might think that these two factors, combined with what I'm characterizing as a loyalty oath all financial institutions who do business with the State of Illinois must soon agree to (covered later), might make the Treasurer's and union's threats a national story. You would be wrong.
Here is most of the very short AP item, carried at the Springfield (IL) State Journal-Register;
State to deny banks that refuse community investment pledge
Illinois State Treasurer Alexi Giannoulias is demanding that Illinois financial institutions reinvest in the communities they serve if they expect future state money.
Beginning June 1, Giannoulias will require all financial institutions to sign a three-point community reinvestment pledge before receiving or renewing state deposits.
It would appear that we're beginning to get a handle on the real reasons why the Treasury Department won't accept TARP repayments. They want to give a club to any and every activist and politician who wishes to use it to impose their will on any financial institution that might get in their way.
And this isn't of interest to anyone outside of Illinois?
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