Oakland Finance Committee Takes on Goldman Sachs
Oakland is one step closer to taking on Goldman Sachs over a expensive debt deal. The city finance committee voted Tuesday to negotiate an early end to the deal.
Oakland pays Goldman Sachs about $4 million a year because of an Interest Rate Swap Agreement negotiated in the 1990s. The deal was supposed to protect Oakland against rising interest rates. Now, the city is looking to get out of it without paying millions in fees.
Councilwoman Jane Brunner says if Goldman Sachs refuses, the city should stop doing business with the Wall Street investment bank.
"We’re trying to tell them that we’re serious," Brunner said. "That this swap was not good for the city. Goldman Sachs was bailed out. A lot of the banks were bailed out. They’ve gotten millions of dollar. Cities are struggling. They need to come to the table and work with us."
The resolution heads to the full council next week. If it passes, the city will have 60 days to re-negotiate with Goldman Sachs.