Bank of America on Wednesday said it would stop funding private prison operators and detention centers, and that it would join with colleagues to distance itself from a sector that has sparked protests over the immigration policies of the US government.
The bank did not comment further. Earlier this year, JPMorgan Chase & Co and Wells Fargo & Co. made similar commitments to stop funding private prison companies.
Activism against the financing of private prisons has increased amidst stricter immigration policies under US President Donald Trump and concerns about detention conditions.
The private detention centers represent about two-thirds of the people detained by the US Immigration and Customs Enforcement Service, according to the global ratings estimates of S & P last year.
Chief Executive Brian Moynihan faced activists in April at the company’s annual shareholders meeting, which asked why the nation’s second largest bank by assets continued to fund private prison companies, even when other banks withdrew of those businesses.
The bank, based in Charlotte, is one of several banks that have subscribed bonds or syndicated loans for CoreCivic Inc and GEO Group Inc, the two largest private prison operators in the United States. In 2018, banks, including Bank of America Corp and Wells Fargo & Co, accumulated about $ 1.8 billion in debt in three agreements for CoreCivic and GEO Group, according to Refinitiv data.
GEO said on Wednesday that Bank of America’s decision will not have an impact on its line of credit, which was recently extended through May 2024.
The decision was previously reported by Bloomberg.
[…] Since March 10, when Silicon Valley Bank, the nation’s sixteenth-largest bank, went bankrupt, the United States has been experiencing financial instability. Considered the largest bankruptcy since the 2008 financial crisis, it caused significant price declines in US stock markets and European financial institutions. […]