A New Way American Cities Can Free Themselves of Wall Street’s Control @alternet
"This is the mentality that led Rolling Stone’s Matt Taibbi to call Goldman Sachs “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
It’s not just Goldman. All of municipal finance has become an extractive industry, pumping billions away from the communities that need them most. Morality is an externality that financial firms seldom concern themselves with. The financial sector’s fee-based business model is designed to maximize profits, not to protect taxpayers.
Banks may not have a moral compass, but their business contracts with our state and local governments can and should. After all, our cities, states and school districts are not simply fodder for Wall Street’s insatiable greed. Our elected leaders have a duty to protect us from predatory financial practices. Cities and states can force banks to charge drastically lower fees, do away with arbitrary fee structures and eliminate onerous terms that divert billions of dollars away from the most vulnerable members of our society into bonus checks for our nation’s wealthiest few.
Governors in states like Wisconsin, Michigan and Illinois are waging war on collective bargaining and telling taxpayers that empowering publicsector unions robs state coffers, but the real drain on public treasuries is the billions in fees paid to banks every year. And unlike money that goes into workers’ pockets, most of these fees are not recycled back into the local economy but sent to offshore tax havens or invested in complex financial schemes. The irony is that collective bargaining is one of the most effective tools available to public officials who truly want to do right by taxpayers—and cast off Wall Street’s tentacles."
