The disagreement between City Council and the City Administrator is another sign of the increased power of banks as the financialization of the economy continues apace.
Goldman Sachs Debarment Heads Back To Oakland Council (Analysis)
By Steven Tavares - Oakland Local
A draft ordinance that could lead to the debarment of Goldman Sachs from bidding on city contracts is heading back to the City Council with amendments, but not before another round of confusion fostered by the city attorney’s office.
In the past month, the issue of debarment has bounced back-and-forth between committee hearings and the full council to the consternation of some council members who say it already gave clear signals for debarment to the city administrator’s office last year when it approved to begin the process that could ultimately lead to the prohibition of Goldman Sachs from doing business with the city.
However, some members of the Council’s Finance and Management Committee Tuesday morning were surprised to find a last-minute opinion furnished by the city attorney’s office featuring a recommendation against Councilmember Desley Brooks’ amendments. The arrival of the hard copy received just 10 minutes before the start of the 9:30 a.m. meeting, said Councilmember Libby Schaaf, was met with contempt.
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The controversial rate swap deal between Oakland and the Wall Street behemoth turned bad for the city, ultimately costing it millions annually. Although debarment will do nothing to make the city whole following the rate swap debacle exacerbated by the Great Recession, but some city officials say the move could have symbolic ramifications for how the city expects to be treated by financial institutions in the future.
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