Goldman Sachs In Jail: Why Is Big Money Moving Into Social Impact Bonds?
Thursday, August 2, 2012
The so-called “social-impact bond” investment at Rikers Island prison, the first of its kind for an American city, means any potential return for Goldman hinges on the success of a program that will educate, train and counsel inmates aged between 16 and 18.
“New York City is continually seeking innovative new ways to tackle the most entrenched problems, and helping young people who land in jail stay out of trouble when they return home is one of the most difficult — and important — challenges we face,” Mayor Michael Bloomberg said, according to the Washington Post.
“As the first city in the nation to launch a social impact bond, we are taking our efforts to new levels and we are eager to see the outcome of this groundbreaking initiative.”
By the terms of the bond, Goldman will stump up a $9.6 million loan to pay for the Adolescent Behavioral Learning Experience (ABLE) rehabilitation program.