Is Goldman Sachs’ new fund really just greenwashing stocks?

Critics are questioning the motives behind a banking giant’s socially responsible investment strategy.

When Goldman Sachs and billionaire Paul Tudor Jones announced a partnership three months ago to help socially conscious investors support “just business behavior”, they promised that their new index fund would generate solid returns for savers while directing their investment dollars towards truly humane companies.

“Capitalism should be a positive force for change,” said Jones in a press release announcing the fund, which is designed to track an index of socially responsible companies identified by his non-profit Just Capital. “Its future will be driven by a new definition of corporate success that is aligned with the values and priorities of the public.”

The partnership comes as pension funds, university endowments and other institutional investors increasingly seek to put their financial weight behind ethical and sustainable corporate behavior. So far, the rebrand seems to be working: the Just fund debuted in June to rave reviews from the financial press and ended its first day of trading with over $250m in assets, making its launch one of the most successful in recent history.

However, a Capital & Main review of corporate documents shows that some of Just’s largest investments are in fossil fuel firms that have been sued for suppressing global climate research, Wall Street behemoths fined for defrauding investors, a social media platform accused of helping rig elections and a tech industry giant criticized for paying its workers starvation wages. read more »

Elon Musk agrees to pay $20 million and quit as Tesla chairman in deal with SEC

Elon Musk agreed Saturday to step down as chairman of Tesla and pay a $20 million fine in a deal to settle charges brought this week by the Securities and Exchange Commission.

Under the settlement, which requires court approval, Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek reelection for three years, according to court filings. read more »

S.E.C. Goes After Musk With Its ʻUltimateʼ Penalty.

Hereʼs Who Else Has Been Barred.

The Securities and Exchange Commission has accused Elon Musk, Tesla’s chief executive, of committing fraud when he said on Twitter: “Am considering taking Tesla private at $420. Funding secured.”

The S.E.C. says Mr. Musk had not had specific conversations about financing when he made that announcement, and so his tweet amounted to a false public statement with the potential to harm

investors. read more »

Credit Suisse Agrees to Pay $10 Million to Settle Charges Related to Handling of Retail Customer Orders

The Securities and Exchange Commission today announced that Credit Suisse Securities (USA) LLC has agreed to settle charges brought by the SEC and the Office of the New York Attorney General regarding material misrepresentations and omissions made in connection with its now-closed Retail Execution Services (RES) business’ handling of certain customer orders.  The settlements require Credit Suisse to pay $5 million to the SEC and $5 million to the NYAG for a total of $10 million. read more »