Bay Area Elected Officials, Workers, Community Allies Demand Wall Street Banks End Harmful Swap Deals Costing Area $150 Million

Oakland, CA-Oakland City Councilmembers Desley Brooks and Rebecca Kaplan joined dozens of workers, faith leaders and community allies on the steps of Oakland City Hall today to demand Wall Street banks end harmful swap deals costing the Bay Area more than $150 million per year. The action comes days after the Los Angeles City Council unanimously voted to demand banks end similar deals draining the city of critical resources.

"City workers are taking furloughs, pay cuts and layoffs to keep our city afloat," said SEIU 1021 member and city employee Al Marshall. "In these hard economic times, we need Wall Street banks to step up and help fix the mess they created."

States and cities across the country continue to slash critical public services to cope with massive budget holes left in the wake of the financial meltdown. By allowing states and cities to renegotiate or cancel so-called "interest rate swap" deals at no cost, Wall Street could provide needed relief to local governments. The fees that Oakland will pay on its swap deal with Goldman Sachs this year actually exceed the remainder of the city's $4 million budget gap.

"Our economic crisis wasn't an accident, it was arson," said SEIU President Andy Stern. "And we're not going to allow the same Wall Street bankers who burnt our economy to the ground come and loot what's left. It's time for Wall Street CEOs to stop putting their companies before the good of our country and end these deals that are bleeding our communities dry."

Here in the Bay Area, swaps will cost taxpayers more than $150 million this year:

o San Francisco faces a $522 million budget gap and will pay $19 million in swap fees this year;

o Richmond, CA faces a $10 million budget gap and will pay $6 million;

o Oakland, CA faces a $4 budget gap and will pay $5.2 million;

o Pittsburg, CA will pay $5 million;

o The Perlata Community College District will pay $19 million;

o The East Bay Utility District will pay $34 million; and

o The Metro Transportation Commission will pay $63 million.

Following a rally at City Hall, a delegation of Bay Area families and community leaders delivered their demands to Citibank, one of the Wall Street banks involved in swap deals nationwide.

Today's action was part of a national campaign by SEIU and community allies to force Wall Street banks to help families and communities recover from the economic devastation the big banks caused. Organizations participating in today's action included SEIU Locals 1021 and UHW, ACCE, Causa Justa :: Just Cause (CJJC), and affiliates of the PICO National Network.