On Thursday Mayor Michael Bloomberg announced that Goldman Sachs Group Inc. will invest $10 million to buy the city’s first ever social impact bond. That money will finance an effort to counsel young offenders at Rikers Island to help keep them out of jail in the future. If the effort succeeds, Goldman Sachs will reap a financial reward. Mr. Bloomberg hailed the so-called pay-for-success bonds, first tried in Britain, as a “promising financing model.” Critics say that addressing social problems like high recidivism rates of is the job of government, not Wall Street firms looking to make money.Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.
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