Interesting story from Reuters about the latest trouble for Goldman Sachs: Questions about whether their Islamic bonds are 100 percent halal. ” title=”hadnt before understood” target=”_blank”>hadn’t before understood. This article helps explain that it’s a little like having a hechsher approve that food is kosher. The key feature is that at least three sharia scholars advising a bond program must confirm that the bank is not charging interest.
But I still don’t understand how the program is then supposed to be profitable for the bank. Is it a matter of charging “fees for service” instead of “interest”?
