Bank of America Cut Off Private Prisons
02 Juillet 2019 - 5:06PM
Dow Jones News
By WSJ City
Bank of America said last week it would stop dealing with
private prisons amid concerns about conditions at immigration
facilities holding migrant children. What the bank didn't say: it
had recently agreed to lend $90m to GEO Group, which runs prisons
and immigration-detention centres, through 2024.
KEY FACTS
--- The announcement followed pledges to stop lending to some
fossil-fuel companies and gun manufacturers.
--- But cutting ties with entire industries has proven
complicated.
--- Due to pre-existing relationships, the bank is on course to
provide credit to some of them for years to come.
--- GEO Group said the announcement wouldn't affect its recently
renewed revolver.
Why This Matters
The GOA deal means Bank of America could be tied to the
private-prison business for another five years. Other companies in
the industry also depend on the bank for financing, according to
regulatory filings.
Meanwhile JP Morgan in March said it would stop lending or
providing banking services to private-prison firms when their
current contracts expire. Wells Fargo two years ago started ending
its relationships with the firms.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
July 02, 2019 10:51 ET (14:51 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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