UC sells shares in private prison companies after Black Student Unions release resolution
The University of California has sold approximately $25 million worth of investments in private prison corporations...after Black Student Unions of all nine UC campuses voted on a resolution calling for immediate divestment...
According to [university spokesperson Diane] Klein, the university makes investment decisions after evaluating the risks of an asset in terms of social, governmental or environmental issues. The university eventually concluded that “based on risk over the next several years, these holdings were not a good investment for...UC,” Klein said in an email.
...[Student group Afrikan Black Coalition, which advocated for divestment, had] reported in a press release that the UC Board of Regents had invested $25 million split among three private prison corporations — the GEO Group Inc., the Corrections Corporation of America and G4S — as well as $425 million in Wells Fargo, which ABC alleged also finances private prison companies.
...[The] university...remains invested in Wells Fargo, according to the ABC press release. Wells Fargo spokesperson Mariana Phipps said Wells Fargo Funds currently holds a “very small” position with two private prison companies — the GEO Group and CCA. She added that Wells Fargo Funds is owned by the funds’ investors rather than Wells Fargo & Company, which does not have corporate ownership of the GEO Group or CCA.