This coalition is united to work toward economic and social justice in the city of Oakland. We are particularly interested in severing the relationship between Oakland and Goldman Sachs.
Michael Corkery recently reported in the Wall Street Journal article, "Oakland Angles for An Exit," that Goldman Sachs is edging toward generosity. According to Corkery:
People involved in the negotiations say that the bank is willing to give - a little. Goldman has offered to lower the city's termination costs by more than $100,000 and spread out the payments over several years, the people said. "The bank is trying to be a good corporate citizen," one of these people said.
While the identities of these people are indistinct, one can't help but to be amused by the pitiful olive branch Goldman Sachs reportedly extended to the City of Oakland. They'll discount a whopping $100,000 from the millions of dollars that we shouldn't be paying for a bond that no longer exists? Really? They're graciously offering to refinance the payments so that the City of Oakland is tied to them for an even longer period of time beyond 2021? Aww. As the Church Lady would say....
Welcome to Oakland, Mr. President. Our people are suffering. We
have a huge foreclosure crisis. Please take a tour of deep East Oakland and see
our problems first hand. Our schools are being closed. Our children are hungry.
Our youth have no future. Most of us are underwater on our mortgage, if we have
not already lost our homes.
Meanwhile, on July 31 our city will pay 2 million
to Goldman Sachs on an interest rate swap that is unfair and unjust.
Where have
you been, Mr. President, in the midst of all of our suffering and despair? Side
with us, not Goldman Sachs.
All of our coalition members agree that last Tuesday, July 3, 2012, "...was a huge victory for both the city of Oakland and for the people throughout the world living under the boot of interest rate swaps." City Council voted unanimously (Pat Kernighan was absent) in favor of the resolution to refuse to do business with Goldman Sachs if the swap isn't terminated, penalty-free. Initially, there was some trepidation and confusion amongst the council when Brunner announced that the vote would be postponed in order to investigate the legality of excluding Goldman Sachs from future financial dealings.
Sentiment regarding City staff's willingness
and ability to drop the swap
After brief discussion, council moved forward. Throughout the evening, our coalition members and its supporters asserted thoughts about the swap in a multitude of ways. By the end of the evening, Libby Schaff intoned that this resolution might not go far enough. Amazingly, Deanna Santana asked the coalition to provide its legal analysis.
It will be vital to monitor the buzz in all sectors as the sixty-day negotiation period passes. Will Goldman Sachs do the right thing and terminate the swap penalty-free, or will Oakland be the first city to boycott Goldman Sachs?
