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'The City Knew': Watch AOC's Fiery Speech About NYC's Taxi Medallion Crisis
By
Elizabeth Kim
Published Sep 30, 2019
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Kristin Callahan/ACE Pictures/Shutterstock
By
Elizabeth Kim
Published Sep 30, 2019
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An impassioned statement by Representative Alexandria Ocasio-Cortez is drawing renewed attention on a push within the City Council to bail out New York City taxi drivers saddled with outstanding medallion loans.
At a congressional hearing last Thursday, Ocasio-Cortez, whose district in the Bronx and Queens is home to many immigrant cabbies, lashed out against the predatory lending practices that led thousands of drivers to borrow huge sums of money for overpriced medallions. She called directly for a bailout.
“These are everyday people, most of them immigrants in New York City trying to start to start their lives and live up to this country’s promise,” she said. Citing one cab driver who was able to take out a $1 million loan on a salary of roughly $22,000, she said, “We’re supposed to act as though this is his fault? This is criminal behavior."
“Regulatory agencies knew, the city knew,” she continued, adding that the spate of driver suicides, at least eight last year, “are not just an indirect side effect, they are a direct consequence of the neglect of a vulnerable community in New York City.”
She added: “This is manufactured financial indentured servitude.”
Below you can watch Ocasio-Cortez's entire presentation, starting at approximately 2:30.
A New York Times investigative series earlier this year revealed how the city and regulators were complicit in the sale of overpriced medallions, which skyrocketed to more than $1 million before crashing in 2014. Despite concerning signs, the city approved and profited off the sale of medallions, which give drivers the right to drive a taxi.
The hearing in Congress was intended to address legislation to protect individuals from abusive lending practices. Ocasio-Cortez said she and other elected officials sent a letter in August expressing concern over the role of federal regulators in the crisis.
On Monday, Council member Mark Levine, who has been leading the effort to draft legislation for a bailout, said the Congresswoman’s attention to the issue gives the effort “enormous momentum.”
Levine said his plan, which is undergoing legal vetting, would be to have the city buy outstanding loans and refinance them on fairer terms.
In June, Mayor Bill de Blasio agreed to waive $10 million in license renewal fees. But he has rejected the idea of a bailout, saying it would be too expensive for the city. His office has estimated the cost as being as much as $13 billion. On Monday, the mayor's office did not immediately respond to a request for comment.
But Levine said such a figure was exaggerated and maintained that a bailout could be accomplished for less than $1 million per driver, roughly the amount the city made in the sale of a single medallion during the bubble.
He said he was not sure when the legislation would be introduced but he said that although council members have questions about the cost and how the plan would work, there was a growing support behind a bailout.
“There’s a consensus that we owe an unpaid moral debt to the drivers that have suffered because of a crisis that we have helped create,” he said.
UPDATE: This story has been revised to clarify that Levine's estimate for a bailout was per driver and that the city made roughly $1 million for the sale of a single medallion during the height of the bubble.
Tagged
we the commuters
mark levine
taxi medallion crisis
City Council
bailout
alexandria ocasio-cortez
Elizabeth Kim
Elizabeth Kim is a reporter on the People and Power desk who covers mayoral power. She previously covered the pandemic, housing, redevelopment and public spaces. A native of Queens, she speaks fluent Mandarin. Got a tip? Email [email protected]
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