Why Did UFT Borrow $62 Million From Citigroup?

You won’t find it in any official union notice, but the United Federation of Teachers in New York City just borrowed $62 million from Citigroup Global Markets, Inc., using its headquarters at 50 Broadway as collateral.

What is the $62 million for? UFT officers don’t have to tell the press or the public, but you would think they would have to tell the union’s own executive board or delegate assembly, comprised of representatives of all the union’s members.

However, UFT board member Arthur Goldstein posts comprehensive notes from board meetings on his blog, nyceducator.org, and there is no mention of any planned loan at any board meeting.

UFT president Michael Mulgrew denies any money problems exist at the union.

Reasons for needing the loan aside, Citigroup ranks high on the union’s Corporate Axis of Evil, having been bailed out by the U.S. government in the financial crisis of 2008. More recently the bank has paid millions in fines to the Securities and Exchange Commission and Commodity Futures Trading Commission.

Well, if you can’t “make the big banks pay their fair share,” you might as well grab some for yourself.


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