Goldman’s Bullish on Boston Bloods Staying Out of Jail

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http://www.bloomberg.com/news/2014-05-08/goldman-s-bullish-on-boston-bloods-staying-out-of-jail.html

Goldman Sachs Group Inc. (GS), which wagered more than $300 billion last year on things like yen rates and bond spreads, just laid down a bet that guys like Nelson “Johnny” Aguilar can stay out of jail.

Aguilar was at a Dunkin’ Donuts near Boston on a Sunday night in March when a shooting outside left a 21-year-old man with a bullet wound to the gut, police said. They arrested Aguilar, a 19-year-old gang member with a criminal record and a tattoo that says “Life’s a Gamble.”

Such crime-blotter moments are Goldman’s concern thanks to a financial product called a social-impact bond. Goldman is anchoring a $21 million plan to help a Boston-area nonprofit called Roca expand its efforts to steer young men like Aguilar away from dealing drugs, stealing cars or committing assaults and murders.

Under the deal, if men targeted by Roca spend 22 percent fewer days in jails and prisons than their peers, Massachusetts would save enough to repay Goldman’s $9 million loan. An even bigger drop in recidivism would hand Goldman as much as $1 million in profit. If Roca fails and too many men end up behind bars, Goldman will lose almost everything it ventured.

[GeorgeGist]

1. Mansacks ...

of Gold.

Who'd a thunk it from this dipshit:

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3. !

[el_bryanto]

2. I don't trust Goldman

I mean i think if done honestly this could be a beneficial thing. But the part where Goldman is out the money if the programs don't succeed I just don't see happening. Rather I think it might well end up being a way to shift even more money out of depressed communities as Boston (in this case) has to shut down other expenditures in order to pay back Goldman or face being downgraded.

Bryant