The following letter is written to aid cities like Oakland who have been negatively impacted by interest rate swaps from Goldman Sachs and other banks. The banks brought us the financial crisis which resulted in zero interest rates. Now the banks are improperly benefiting from those rates through contracts they made with cities BEFORE they blew up the financial system.
If you would like to protest these unfair dealings, please use the link at the bottom of the letter. You may also use the format of the letter:
Hi, Cities across America have a new tactic to fight back against Wall Street's double dealing. Join me and stand with those who are fighting back. On July 3, the City of Oakland told Goldman Sachs to re-negotiate a toxic "interest rate swap" costing the city $4 million per year or never do business with Oakland again. If other cities follow suit, Goldman will have to change its ways. Wall Street banks -- bailed out by taxpayers -- are literally profiting off the fact that they tanked the economy, while cities all over America have been forced to close schools, libraries, and cut police. The Federal Reserve lowered interest rates paid by Wall Street to promote growth, not decimate our communities, but Goldman is forcing Oakland to pay a locked-in interest rate of 5%, even though it pays almost nothing for the money it borrows. According to Goldman, the only way it will let the city out of its contract is to pay a $15 million penalty. Anyone can see this is not right. Estimates show there are more than 1,100 swap deals out there costing taxpayers $2.5 billion per year. If other cities paying for toxic swaps follow Oakland's lead, Wall Street will have to start listening to Main Street. Stand with Oakland and tell other cities to fight back: http://www.couragecampaign.org/OaklandVsGoldmanSachs Thanks!!