Goldman Sachs and Occupy Wall Street

 

The Occupy Wall Street protests in Zuccotti Park and bulge bracket investment bank Goldman Sachs have come into conflict again.  Earlier in October, New Yorkers received invitations to attend an anniversary dinner at the Lower East Side People’s Federal Credit Union.  A credit union is a financial institutions that is operated for the purpose of offering credit and loans at competitive rates.  Many credit unions have the goal of community development.

The People’s Federal Credit Union in New York lends to New York’s poor people.  To celebrate its 25th anniversary, it send invitations to the heavy hitters in New York, including Goldman Sachs.  Also invited was “Occupy Wall Street”.  Shortly after Goldman Sachs learned Occupy Wall Street was on the invitation list, it withdrew its name and a $5000 sponsorship from the dinner.

The event is a manifestation of the conflict between bankers, non-profits, and the protestors.  Goldman Sachs told the credit union it doesn’t want to support a protest movement that parades signs demonizing capitalism.  Capital One Bank withdrew its name, but kept its $5,000 pledge.  The hosts and board members of the credit union will need to find another way to cover the $20,000 cost of the dinner. 

Mark Reed, a host committee member who runs a New York based private investment fund that lends to non-profits, said he decided to keep his name on the host list to support the credit union’s 25 years of good work.

Occupy Wall Street finance committee member Pete Dutro said the protestors opened an account at the People’s Federal Credit Union largely because it is a people’s bank.  The group has $450,000 in donations.