Debarring Goldman Sachs would be huge news.
Oaklands Local reports that last week the Oakland City Council approved a $226,000 budget to hire an outside consultant to investigate Goldman Sachs’ controversial rate swap with the city.
The 1998 Goldman Sachs deal with the city, of which, some now say was rigged to fail, will cost Oakland nearly $11m through 2021. Although, most agree nothing can be done to change the binding contract without incurring even greater costs, the City Council has pushed over the past year to beginning debarment proceedings against Goldman Sachs doing business with the city in the future.
Council member Lynette Gibson McElhaney called it a 'pretty significant contract' and asked, 'What am I getting ?' Councilmember Libby Schaaf, who once suggested simply reading Rolling Stone to understand Goldman Sachs’ corporate behavior, said, 'I was surprised about how much this could costs us.'
Both McElhaney and Schaaf even suggested asking attorneys and financial experts to volunteer time to the investigation. That is not possible, said an assistant city attorney, since any administrative hearing for debarment of Goldman Sachs would need to maintain its independence and neutrality.
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image: © Lisamarie Babik