Continue to Rip Off Oakland, We Will Stop Doing Business With You

By Beth Kean and Felipe Cuevas
from California Progress Report

Members of Oakland community groups, religious leaders, and city workers packed the Finance Committee meeting Tuesday to demand Goldman Sachs cancel the harmful “interest rate swap” deal without a $15 million payout to the bank. Our City Council leaders joined us in standing up to Goldman Sachs and voted to negotiate with the bank to terminate the toxic deal without the $15 million payout to the bank— and added that if the bank refuses, to stop doing business with Goldman Sachs.  Why would we ever do business again with someone who ripped us off?

Councilmember Jane Brunner introduced the motion that called for (1) City staff to negotiate with Goldman Sachs to terminate the swap deal without the termination fees currently estimated at $15.5 million, (2) To report back in 60 days on the progress of negotiations, and (3) If Goldman is unwilling to negotiate, to stop doing business with Goldman Sachs. City Finance Committee Chair Ignacio de la Fuente supported the Brunner motion saying, “The difference here is that we bailed out this bank. We need to use the economic power we have to send a message.” Councilmember Desley Brooks also supported the motion and asked all her colleagues to do the same. The motion will go to the full City Council next week on Tuesday, July 3, 2012.

More:

Goldman Sachs and Friends Throw Oakland Under The Bus

According to a new report entitled "Riding the Gravy Train" released by the Refund Transit Coalition, several banks have been participating in interest-rate swaps in struggling cities like Oakland.  These institutions have been gutting public transit agencies, negatively affecting working class commuters - particularly working class people of color.  As a result of these transit-related toxic swaps, commuters are being overcharged, inconvenienced by reductions in services, and left with few transit options.  It should come as no surprise that Goldman Sachs has extended another tentacle into our pockets:

The Metropolitan Transportation Commission (MTC) is responsible for long-range planning and many funding decisions for public transit in the nine-county Bay Area region. It oversees local operators like MUNI in San Francisco and Alameda County Transit (AC Transit) in Oakland and the East Bay. The MTC is losing $48.1 million a year on its swap deals with Ambac, Bank of America, JPMorgan Chase, Goldman Sachs, Citigroup, Bank of New York Mellon, Morgan Stanley, and Ambac. (93) It is stuck in most of these deals until 2036 or later. By the MTC’s own estimates, these deals will cost more an additional $1.3 billion over the remaining life of these swaps.(94) 

It is clear. The City of Oakland needs to DROP THE SWAP and sever all financial relations with Goldman Sachs.

Drop The Swap! Join us, Jun. 26th!