Goldman Sachs is launching a $250m “social impact” fund whose returns are linked to the success of projects such as affordable housing, pre-school education and how many young criminals commit new offences after leaving New York’s notorious Rikers Island prison.

Wall Street banks are increasingly vying for the kudos and cash that can come with investing in projects intended to improve conditions in cities US-wide.

Morgan Stanley on Friday said it was establishing the Morgan Stanley Institute for Sustainable Investing, with the goal of attracting $10bn of client funds for projects intended to provide social benefits as well as financial returns.

More used to fighting each other for lucrative investment banking business such as Twitter’s initial public offering, the companies are to compete in regard to sustainable investing...

Full Article