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Report Finds Risky Money Managment by University of California

November 19, 2012 119 Comments

A report released last week by UC Berkeley students, reveal the staggering human costs of University of California’s interest rate swaps and debt-driven profit strategies. Entitled Swapping our Future: How Students and Taxpayers are Funding Risky UC Borrowing and Wall Street Profits, the report shows that UC management has doubled university debt from $6.9 billion to $14.3 billion over the span of four years. Funds from this immense borrowing from Wall Street has been directed to for-profit activities that fall outside of UC’s core mission, leaving students to bear the costs—tuition has increased 300% since 2002 while service cuts have been left unmitigated. Only a day after its release, the report has already ruffled some feathers among university officials.

To read the full report, please visit here.

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