Sunday, April 21, 2013
Friday, November 30, 2012
Tell the Oakland City Council to stand firm! No more business with Goldman Sachs until they drop the swap without termination fees!
The Oakland- Goldman Sachs swap termination issue has just been placed on the agenda for the Oakland City Council on December 4, 2012. The meeting begins at 5:30 pm in the third floor chambers at City Hall. This is agenda item number 14. To date Goldman Sachs has refused to negotiate a termination of the swap without Oakland paying them millions of dollars. If you can come support putting teeth into the city council's July 3 resolution to boycott business with the vampire squid, please do!
Friday, November 23, 2012
As election season got into full swing this past summer, Oakland City council members made a splash by threatening to cut ties with Goldman Sachs if the investment bank refused to cancel an investment that will cost the city about $20 million before it expires in 2021.
If the council's bluster was a bluff, Goldman is calling it.
The bank refused Oakland's demand to cancel the interest rate swap at no cost to the city. It's willing to negotiate an early termination to the investment, but it won't terminate at below-market value price for the city, according to a city report.
The issue will go before the City Council's Finance and Management Committee on Tuesday.
Oakland entered into the deal with Goldman to protect itself from potential interest rate spikes on city bonds issued in 1998 to fund police and firefighter pensions. But interest rates have remained low, and the city continues to pay Goldman a fixed interest rate that is much higher than the prevailing rate Goldman pays Oakland.
Unions and citizen groups pushed Oakland and other municipalities to take a tough stand with investment banks over interest rate swap deals. They said banks were profiting from their role in the 2008 financial collapse, which forced the Federal Reserve to slash interest rates and consequently turned the deals dramatically in the banks' favor.