USA: Bank of America will stop lending to private-prison firms

Author: Lananh Nguyen, Bloomberg, Published on: 26 June 2019

Bank of America Corp., the second-biggest U.S. bank, will stop lending to companies that run private prisons and detention centers. “We have decided to exit the relationship’’ with companies that provide prison and immigration-detention services, Vice Chairman Anne Finucane said... The move followed a review by the bank’s environmental, social and governance... committee, which included site visits and consultation with clients, civil rights leaders, criminal justice experts and academics... The company will stop its activities in the industry as soon as it can, while meeting contractual obligations.

Shares of two of the largest private-prison companies, GEO Group Inc. and CoreCivic Inc., fell... Wednesday. Steve Owen, a CoreCivic spokesman, said Bank of America misrepresented the company and based its decision on politics. “We care deeply about doing business in an ethical, responsible way,” he said in an emailed statement... JPMorgan Chase & Co. took a similar step in March, breaking off its relationship with the industry after deciding it was too risky, and Wells Fargo & Co. is also halting loans to the industry... Protesters have been urging bank executives to back away from the business... While the companies run centers on behalf of U.S. Immigration and Customs Enforcement, they’ve said they don’t operate facilities that house unaccompanied minors. 

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