JPMorgan backs away from private prison finance

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JPMorgan Chase & Co has decided to stop financing private operators of prisons a...

NEW YORK - JPMorgan Chase & Co has decided to stop financing private operators of prisons and detention centers, which have become targets of protests over Trump administration immigration policies.

JPMorgan is one of several banks that have underwritten bonds or syndicated loans for CoreCivic Inc and Geo Group Inc, the two major private prison operators in the United States. In 2018, banks, including Bank of America Corp and Wells Fargo & Co raised roughly $1.8 billion in debt over three deals for CoreCivic and GEO Group, according to Refinitiv data.

Prison finance is small business for JPMorgan, the biggest bank in the U.S. by assets. JPMorgan was a leader in 1,153 loan deals worth $354 billion across all industries, according to Refinitiv data. Activism against the financing of private prisons heated up after revelations that undocumented minors were being separated from their adult parents or guardians and being held in detention centers.The Trump administration reversed its separation policy after a public outcry and many children were released from detention centers and reunited with their parents. Others were sent to foster homes or to live with relatives in the United States.

CoreCivic changed its name from Corrections Corporation of America in October 2016. It said the rebranding was to highlight its strategy to transform its business “from largely corrections and detentions centers to a wider range of government services.” Protest groups have also appeared regularly outside of Dimon’s Manhattan apartment. On Valentine’s Day, a group appeared with a mariachi band and signs that begged the executive to “break up with prisons.”

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Two words: risk aversion

smart choice

I am pretty sure they have shares under other names for profits in the prison industry. It is secure.

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