Final answer:
The argument indicating that socially-responsible investing by banks would lead to overregulation and lower profits is considered weak, as it misunderstands the balance required between market freedom and government rules.
Step-by-step explanation:
The argument suggests that banks and financial institutions should not be obligated to engage in socially-responsible investing, as this would lead to overregulation, decreased opportunities, and hence lower profits. Evaluating this statement, it's important to consider the historical context of financial institutions and their impact on the broader economy.
The 2008-2009 Great Recession made it clear that the health of an economy is deeply intertwined with the stability of its banks and financial institutions. The argument assumes that socially responsible investing inherently leads to overregulation, a premise that could be seen as weak considering that responsible investing does not necessarily equate to a loss of opportunities or lower profits; it is more a question of finding the right balance between market freedom and government rules.
Moreover, it ignores the potential long-term benefits of sustainable business practices, which can lead to new market opportunities and mitigate financial risks associated with social and environmental issues.