Business

JPMorgan Ends Financing Private Prisons After Protests

JPMorgan Ends Financing Private Prisons After Protests
JPMorgan Ends Financing Private Prisons After Protests

JPMorgan Chase & Co has stepped up to discontinue financing private operators of prisons and detention centers. These centers have become targets of protests after Trump administration immigration policies.

The step arrives following the bank’s ongoing evaluations of the costs and benefits of serving different industries.

JPMorgan is one of several banks that have signed bonds or syndicated loans for CoreCivic Inc and Geo Group Inc, the two major private prison operators in the country.

Last year, banks, including Bank of America Corp and Wells Fargo & Co raised nearly $1.8 billion in debt over three deals for CoreCivic and GEO Group, according to Refinitiv data.

California based Wells Fargo earlier said that it is cutting its ties with the prison industry as an initiative under its environmental and social risk management process.

Their credit exposure to private prison companies has substantially decreased and they are not actively marketing to that sector.

Furthermore, Prison finance is a small business for JPMorgan, the biggest bank in the U.S. by assets. The bank led 1,153 loan deals accounting to $354 billion across all industries, according to Refinitiv data.

Arguments against the financing of private prisons aggravated after it came to notice that undocumented minors were being separated from their adult parents or guardians and being kept in detention centers.

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