NEW YORK — New York City says Goldman Sachs will invest almost $10 million in a new jail initiative that will allow the investment firm to profit if the program succeeds in reducing recidivism rates.
The city is to announce Thursday that Goldman will provide a $9.6 million loan to pay for the Rikers Island program. If recidivism drops by 10 percent, the firm would get back the $9.6 million. If it drops even more, it could make as much as $2.1 million in profit. If recidivism doesn’t drop by at least 10 percent, Goldman would lose as much as $2.4 million.