As county budget hearings begin, community members call to hold banks accountable for LIBOR fraud
SAN JOSE, Calif. – Want to buy a million-dollar muffin? On Tuesday, a coalition of residents, community leaders, and Santa Clara County workers will be offering ridiculously over-priced baked goods outside the Santa Clara County Government Center to recover as much as $54 million the county could have lost as a result of Wall Street LIBOR fraud.
“County officials need to act to investigate and recover all the money the banks may have cost our community, but instead they’re proposing cuts to vital public services,” said Yolanda Vega, a health service representative for Valley Medical Center. “That’s why we’re holding a Big Bank Bake Sale. Million-dollar muffins are ridiculous, but it’s nothing compared to what the banks owe taxpayers.”
In the biggest financial fraud in history, 16 of the world’s largest banks illegally rigged the world’s benchmark interest rates (LIBOR, the London Interbank Offered Rate) to keep them artificially low. This maximized banks’ profits but could have cost public entities like Santa Clara County millions of dollars in its general investment pool and pension funds. The LIBOR scandal may have taken up to $54 million from Santa Clara County alone.
Eight California cities, counties, and public entities, including San Mateo and San Diego counties, have already filed lawsuits against the banks to recover losses as a result of LIBOR fraud.
WHAT: Big Bank Bake Sale and community rally
WHO: Hundreds of Santa Clara County workers, Community First Santa Clara coalition members, and county residents
WHEN: Tuesday, June 18 (Big Bank Bake Sale starts at 12:30 p.m. Hundreds will rally at 5 p.m.)
WHERE: 70 W. Hedding St., San Jose
WHY: In the biggest financial fraud in history, 16 of the world’s largest banks illegally rigged the world’s benchmark interest rates to maximize their profits and could have cost Santa Clara County up to $54 million in losses.
VISUALS: Big Bank Bake Sale offering baked goods for millions of dollars, signs, banners, hundreds of county workers and community members
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The Service Employees International Union is an organization of 2.1 million members united by the belief in the dignity and worth of workers and the services they provide. SEIU is dedicated to improving the lives of workers and their families and creating a more just and humane society. For more information, visit www.seiu521.org