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Illustration: Lazaro Gamio/Axios

In a big week for hypocrisy, the leader of the pack was surely Bill McGlashan, the CEO of the world's largest impact investing fund.

McGlashan, who was once described by the New York Times as resembling "a Buddhist monk," led a multibillion-dollar investing vehicle designed (among other things) to "expand access to educational attainment." Simultaneously, he was allegedly spending $250,000 of his own money to bribe his son's way into a selective university.

McGlashan was fired on Thursday, an action he claimed to be "perplexed" by. (It seems that McGlashan just can't avoid lying: There's no way he didn't know why his bosses wanted to fire him rather than allowing him to resign.)

  • Where it stands: "A man who embodied the faith that the meek of the earth could be saved by private-equity barons," tweeted Anand Giridharadas, "has been indicted for rigging the opportunity structure against the disadvantaged."

Why it matters: McGlashan exemplifies the way in which financiers claim the moral high ground while refusing to compromise their own privilege. McGlashan's downfall marks an opportunity to critically re-examine the entire world of impact investment.

"Green bonds" drive a lot of impact investing, even though they're mostly indistinguishable from their non-green siblings.

  • A recent World Bank bond was ostensibly designed "to raise awareness for the importance of investing in women and girls." There's no obvious way in which it does that, and it's a minuscule $4 million in size — a drop in the bucket, compared to the Bank's annual $50 billion in bond issuance.
  • The World Bank's ebola bond was, it said, “a momentous step” that would "serve the world’s poorest people.” The idea: Were ebola to flare up again in west Africa, investors' money would be used to address it. Investors so far haven't lost a penny, despite the outbreak of the 2nd-largest outbreak of Ebola on record.
  • US municipal green bond issuance fell to $4.9 billion in 2018, per S&P Global Ratings, down more than 50% from $10 billion in 2017. Development banks also saw their green bond issuance fall. But for-profit banks, largely in China, took up a lot of the slack. They issued $48 billion of green bonds in 2018, up from $23 billion the previous year.
  • The real impact: A lot of people who think that they're making socially responsible investments are really just buying Chinese bank debt.

Equity impact investment can also be highly dubious. See for instance DBL Partners (it stands for "double bottom line"), which has put money into companies ranging from online luxury-consignment store The RealReal to bankrupt Wi-Fi juicing company Juicero.

The bottom line: Impact investing, by its nature, involves making the rich richer when increasing inequality is one of the world's great dangers. Bill McGlashan was at the forefront of attempts to quantify the social impact of investments, but I have yet to see an internal impact accounting that includes the consequences of funneling dynastic wealth to him and his family.

Go deeper

Scoop: 50,000 migrants released; few report to ICE

A law enforcement officer walks to meet migrants crossed the Rio Grande River illegally last month. Photo: Brandon Bell/Getty Images

About 50,000 migrants who crossed the southern border illegally have now been released in the United States without a court date. Although they are told to report to an Immigration and Customs Enforcement office instead, just 13% have showed up so far, Axios has learned.

Why it matters: The sizable numbers are a sign of just how overwhelmed some sectors of the U.S.-Mexico border continue to be: A single stretch covering the Rio Grande Valley had 20,000 apprehensions in a week. The figures also show the shortcomings of recent emergency decisions to release migrants.

1 hour ago - World

Scoop: Israel launches maximum pressure campaign against Ben & Jerry's

A Ben & Jerry's store in Yavne, Israel. Photo: Ahmad Gharabli/AFP via Getty

The Israeli government has formed a special task force to pressure Ben & Jerry's ice cream and its parent company Unilever to reverse their decision to boycott Israeli settlements in the West Bank, Israeli officials tell me.

Why it matters: The Israeli government is concerned the move by Ben & Jerry's will encourage other international companies to take similar steps to differentiate between Israel and the West Bank settlements. A classified Foreign Ministry cable, seen by Axios, makes clear the government wants to send a message.

Video game developers at Activision Blizzard say they'll walk out Wednesday

Illustration: Shoshana Gordon/Axios

Employees at Activision Blizzard will hold a walkout Wednesday in protest of widespread harassment allegations across the company, a spokesperson on behalf of the group told Axios.

Why it matters: Walkouts are a drastic measure for developers in a largely non-unionized field, a testament to just how angry employees currently are.