
Slaveowner Alexander Hamilton founded Bank of New York; kidnapped Africans, banned from reading, founded U.S. public education after freedom
$523.8 million debt for 2010-11 is 90.7 percent of state per-pupil aid
By Diane Bukowski
DETROIT – Former Detroit Public Schools CEO Kenneth Burnley, Jr. and current Emergency Financial Manager Robert Bobb have enslaved the Detroit Public Schools to the Bank of New York Mellon by borrowing hundreds of millions of dollars. The Bank was founded by slaveowner Alexander Hamilton.
The debt is expected to rise to $523.8 million by 2011, or 90.7 percent of state per-pupil aid for that year. This year alone, DPS debt of $438.8 million amounted to 71.2 percent of state per-pupil aid.
This bombshell is hidden in plain sight on the Detroit Public Schools website, under “Resources-District Data-Financial Data and Reports.” Monthly DPS reports to the Bank of New York Mellon Trust Company N.A., a Bank of New York Mellon subsidiary, are included on the site under “set-asides.”
“The Emergency Financial Manager was supposed to eliminate the $219 million DPS deficit when he came in,” said CPA Greg Frazier, formerly Deputy Auditor for the City of Detroit, who also filed and won a Freedom of Information Act request for DPS financials for 2006-07, in conjunction with community organization Call ‘em Out.
“But since the Emergency Financial Manager has come to manage the emergency, we are drowning in more debt with a deficit now of $332 million. We are spiraling to the bottom, and he is helping us to get there real quick.”
Frazier added, “When Bobb leaves next March, that debt will be even higher. It means a lot less funds going to resources for the children. While here, he added to the legacy debt he talks so much about. He is the proud owner of 56 percent of that debt so far. The banks have yet to share in solving any problems they have created. Even President [Barack] Obama is not holding them responsible. The debt is being paid on the backs of the citizens, while banks like Goldman Sachs have tremendously enriched themselves.”
The Bank of New York Mellon (BofNYM) is the nation’s oldest bank, with $23 trillion in assets. The Bank of New York was founded in 1784 by Hamilton, and merged with the Mellon Corporation in 2007. The Mellon family is ranked number five by wealth in America’s 60 Families.
B of NYM is also custodian of the government’s $700 billion Troubled Assets Relief Program (TARP). It was paid $20 million in fees to manage the program, and further benefited by selling $3 billion of its preferred stock to the federal government under the program, according to Bailout Sleuth. It has since repaid the $3 billion. Its CEO Robert Kelly is notorious for objecting to proposed restrictions on bonuses paid to top executives of the bailed-out banks.
It also has ties with Chase Bank, one of the nation’s foremost culprits in massive foreclosures. In 2006, J.P. Morgan Chase & Co. announced they would swap their corporate trust unit for Bank of New York Co.’s retail and small business banking network.
TARP has doled out billions to bail-out the nation’s largest banks, which in turn have done virtually nothing to stem the nation’s Katrina of foreclosures. Foreclosures in Detroit have drastically reduced another source of school funding, property taxes, which accounted for $75.4 million of DPS cash receipts in 2009-2010. Continue reading