'Toxic Swaps' must be ended... Labor Beat video shows Chicago Teachers Union continuing protests against Chicago Public Schools 'swaps' with big banks....
Friday, Sept. 19, 2014. Chicago Teachers Union members and retirees from AFSCME Council 31 and SEIU Healthcare Illinois marched in front of the Chicago headquarters of Loop Capital, a private investment firm run by one of Mayor Emanuel's pals. Loop Capital, according to the CTU, has extracted "through risky interest rate swap deals" over $100 million yearly from the city's public schools.The video of the event is now available from Labor Beat On YouTube at:
http://youtu.be/46gRPVpYdpw. It is also archived at: laborbeat.org
Jesse Sharkey (CTU VP): The Mayor says tough choices are needed to make workers pay for the economic crisis. But Rahm needs to make the tough choice of taking Loop Capital into toxic swaps arbitration to recover millions for the city's schools. Photo: Larry Duncan / Labor BeatBig financial deals between governments and banks are not the easiest things to understand, so we have graphically illustrated some of the key concepts. Also helping us wrap our heads around bad swaps are Jackson Potter (Chicago Teachers Union Staff Coordinator); Matthew Luskin (CTU Organizer); Jesse Sharkey (CTU Vice President); and Kristine Mayle (CTU Financial Secretary).
When these loans were set up, banks such as Loop Capital failed to fully disclose the risks of the agreements. The protesters at 111 W. Jackson called for Mayor Emanuel to file for arbitration so that CPS and the City of Chicago can renegotiate the loans, therefore recovering hundreds of millions of dollars. That would help alleviate the funding crisis which the schools now face. But Mayor Emanuel doesn't want have these swaps arbitrated, probably because his friend Jim Reynolds, head of Loop Capital, is making so much money from them.
Representatives of the unions on Friday tried to go up to Loop Capital's offices, but agreed to wait outside the building after being assured that a representative from Loop Capital would come down to talk with them. The building security then promptly locked the door and told the demonstrators that no one was coming down, and if they didn't leave the property the cops would be called.
This video about the Sept. 19 protest provides the basics of what toxic swaps are, and exposes the class ties between investment firms and the Mayor of Chicago "that are robbing Chicago's essential public services and schools." One class robs another class is how things are done in Chicago. Also appearing are Norine Gutekanst (CTU Organizing Coordinator) and Irene Robinson (Kenwood-Oakland Community Organization). Length - 11:56
