Funeral Directors may have to ask for for a funeral cost bailout. It is quite evident that folks around the USA are asking for the lower cost funeral. It can be said that some funeral directors already have received a funeral cost bailout.
A bailout to the Funeral Industry will contribute to the distrust of Funeral Directors. The Funeral Industry has had some credibility hits this Year. The Illinois Funeral Directors Association IFDA Preneed Trust Mismanagement Debacle, The National Prearranged Services Scandal and a recent Neptune Society Scandal in Colorado.
NFDA Secretary Randal Earl stated that this is the worse time for funeral directors in over 30 years. Now what was happening over 30 years ago is quite a mystery. Thanks to and according to the Guardian Newspaper (UK) reporting from New York.- New York Funeral Directors may be asking for a bailout on funeral cost in the near future. In the article specific industries are named that may need a bailout.
“Bereaved relatives are cutting back on the size and scale of send-offs as they worry about the cost of elaborate services. Traditionally, a typical package included a viewing of the body, a funeral and a graveside service. As times get tough, many people leave out the viewing, according to Randall Earl, secretary of the National Funeral Directors Association.”
“We had a slowdown in the early 1980s. There was some effect then, but nothing like it is now,” said Earl, who runs a funeral home in Decatur, Illinois. He balked, however, at the idea of getting a handout from Paulson’s fund. “I would not like to see that happen,” he said. “The funeral profession, for the most part, are small business people who are entrepreneurial in their own areas and they’ve come through tough times.”
You can check out the full article here:
Maybe the Secretary of the National Service Directors Association got a bailout already. His Funeral Home as part of the Illinois Funeral Directors Association got a bailout.
Here is why:
The Funeral Industry had a bailout on Dec. 5th 2008. Like all bailouts there is a condition.
Merill Lynch was purchased by the Bank of America and it went through on DEC 5th 2008. Recently the IFDA Preneed Trust was taken on by Merrill Lynch Bank and Trust. Merrill Lynch became the trustee of the IFDA Preneed Trust on November 3rd, 2008.
The IFDA Mismanaged the IFDA Preneed Trust and the license was removed by Comptroller of the State of Illinois and taken away from the Illinois Funeral Directors Association. The Reason for this was a 40 Million Loss plus of funds in the IFDA Preneed Trust. This happened in February 2008.
In November I questioned the wisdom of Merrill Lynch as trustee. Merrill Lynch has long had history of being invovled with troubled assets.
Bank of America was bailed out by the US Treasury to the tune of 25 Billion USD.
Bank of America appears to have accepted the IFDA Preneed Trust, trustee agreement with Merrill Lynch.The almost 300 million trust fund will be bailed out. This means the funeral industry got a bailout via Bank of America and Merril Lynch. The US TREASURY BEING THE ORIGINAL SOURCE.. Note The bank of America could still reject the IFDA agreement with Merril Lynch. One could say that the bailout may have a condition
Maybe the Secretary of the NFDA already had his bailout with the condition of course.
By the way I believe the Funeral Industry needs regulation not a bailout. Just like Wall Street there was essentially no regulation in the Funeral Industry under the Bush Administration.
Blog by Your Funeral Guy, Funeral Director, Author
(update Dec 26th Here is what the Bank of America says about this: There must be full shareholder approval: “The transaction is expected to close in the first quarter of 2009. It has been approved by directors of both companies and is subject to shareholder votes at both companies and standard regulatory approvals.”
The Link is here: http://newsroom.bankofamerica.com/index.php?s=press_releases&item=8255