Goldman Sachs to invest $10m in jail programme

on 03/08/2012 08:51:31

Goldman Sachs bank will invest almost $10m (€8.13m) in New York City jail programme that will produce profits for the investment firm if reoffending rates drop.

It is the first US effort of its kind to enlist private investors in financing public social programmes.

Social impact bonds, or pay-for-success contracts, began in Britain and are in the works in some US state governments. But New York City is the first in the nation to put one together, officials and experts say.

Inmates aged 16 to 18 will receive education, training and counselling intended to reduce the likelihood of them reoffending after their release.