Monthly Archives: April 2012

Fighting banks and fighting back in Oakland: the Goldman Sachs “rate swap”

Politicians and financial experts typically describe Oakland’s links to banks and other institutions of finance capital in a language that conceals relationships of domination and exploitation. The spreadsheets, flow charts, and jargon about “best practices” and “fiscal responsibility” make the ongoing extraction of resources from the city and the impoverishment of its residents seem as natural and immutable as the laws of gravity. Of course, beneath all of this are material, tangible interactions between people, which we can name, criticize, and—if we wish—abolish.

A group called the Coalition for Economic and Social Justice (CESJ) launched an important challenge to Oakland’s ties to finance capital at a meeting of the Oakland City Council last February. Led by Minister Daniel Buford of the Allen Temple Baptist Church, members took the podium to condemn a “rate swap” deal that Oakland signed with Goldman Sachs fifteen years earlier. Declaiming this swap as immoral, they ruptured the supposedly “value-free” language customarily used to characterize such deals and implicitly created a context for a much broader discussion of the city’s economy. This is a historic achievement that we must build upon, but, to do so, and to ensure that the coalition’s challenge is not emptied of its richness, we need to put the rate swap in the context of a broad, critical perspective on the city’s economy and its relation to finance capital. This is true for at least two crucial reasons that I will describe below. Continue reading