Oakland vs. Goldman Sachs

The different municipalities entered interest-rate swaps with Goldman Sachs, in which the city paid the bank fixed amounts in return of payments that rise with interest rates. Now that these interest rates are zero, the cities are paying big -the Refund Transit Coalition estimates $2.5bn a year for the city. Litigate Goldman and face higher interest rates in the future, or suffer the necessary pains of honoring private conflicts.