Oakland leaders took their financial troubles to the
doorstep of Goldman Sachs on Tuesday, urging other cities to join them in
fighting a bank that has become a lightning rod for criticism of the U.S.
financial system, cnbc reports.
Oakland is trying to get out of a Goldman-brokered interest
rate swap that is costing the cash-starved city some $4 million a year. The swap, entered into 15 years ago as part
of a bond sale to hedge against rising interest rates, has turned sour for
Oakland now that interest rates are near zero.
"I hope that other cities will follow our lead,"
said Oakland city council member Desley Brooks, addressing about 30 protesters
outside Goldman's San Francisco offices.
Oakland has had to slash city services and lay off police
officers even as it wrestles with a high crime rate and other urban ills. Oakland is paying 5.68 percent on debt associated
with the swap, even with interest rates at record lows.
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