(Screengrab: Upheaval Productions)The City of Oakland is currently debating the possibility of terminating a contract it has with the investment bank Goldman Sachs. The deal in question is called an interest-rate swap, and is a particular type of arrangement that was supposed to save the city money, but instead has resulted in Oakland taxpayers making annual payments of around $4 million to the banking giant.
This video takes a look at interest-rate swaps and how they’ve resulted in the transfer of billions of dollars in taxpayer funds from public institutions to Wall Street banks, as well as how Oakland community members are challenging these deals to ensure that needed resources stay in their city.
(Produced by David Zlutnick/Upheaval Productions.)