And social impact bonds aren’t Goldman’s first foray into this kind of cutting-edge, free-market economic philosophy. Goldman currently runs an innovative program called “10,000 Small Businesses,” which helps entrepreneurs create jobs and economic opportunity by providing better access to education, capital, and business-support services.
The sister program to “10,000 Small Businesses” is “10,000 Women,” a five-year initiative providing underserved female entrepreneurs in developing and emerging markets business and management education. And Goldman Sachs Group, Inc. (NYSE:GS) isn’t the only Wall Street bank getting on the conscious-capitalism train.
JPMorgan Chase & Co. (NYSE:JPM) currently has five investments in its social-finance portfolio, including the African Agricultural Capital Fund and the Bridges Social Entrepreneurs Fund. The Bank of New York Mellon Corporation (NYSE:BK) is famous for its commitment to philanthropy. From 2010 through 2012, BNYMellon gave more than $100 million to charity through its corporate, foundation, and employee cash-giving programs.
To reiterate, Goldman will lose its entire investment if the Utah High Quality Preschool Program fails. It’s true that $4.6 million isn’t exactly a make-or-break bet for Goldman, but the company is still putting its money where its mouth is. And even if the bank is doing all of this for PR purposes (which I honestly don’t think is the case), who cares? So long as they’re doing it.
The article Goldman Sachs Defies Great Vampire Squid Label originally appeared on Fool.com and is written by John Grgurich.
Fool contributor John Grgurich owns shares of Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM). Follow John’s dispatches from the not-so-muddy trenches of high-finance and big-banking on Twitter @TMFGrgurich. The Motley Fool recommends Goldman Sachs Group, Inc. (NYSE:GS). The Motley Fool owns shares of JPMorgan Chase.
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