Here’s How US Banks Are Jeopardizing The Financial Future Of Private Prisons
Activists have been protesting to end the for-profit prison system. While there hasn’t been a lot of movement there, there is finally some news that shows the mounting pressure is working. Two major private prison companies, GEO Group and CivicCore have lost all of their major bank partners shutting down crucial credit lines. People are celebrating the announcement.
Infamous private prison companies CivicCore and GEO Group are in a lot of financial trouble.
According to Forbes, GEO Group and CivicCore are losing $2.4 billion in credit lines from the banks who were still doing business with them. For reference, that is 87.4 percent of all of their future funding. This is major news as the private prison system has relied on the investment and funding from these banks.
The two companies are behind the growth of the private prisons and detention centers littered throughout the country.
JPMorgan Chase, Wells Fargo, Bank of America, SunTrust, BNP Paribas, Fifth Third Bancorp, Barclays, and PNC have all pledged not to renew their business with the two incarceration-based companies. Private prisons are a rather new phenomenon in the U.S. and has led to questionable practices. Many critics question the business model that strives to increase the population and time of those incarcerated to make money.
People are celebrating this news as a move in the right direction.
While the big banks have walked away, some smaller regional banks are still supporting the companies for now. Those banks include Regions (based in Birmingham, Alabama), Citizens Bank ( based in Providence, Rhode Island), Pinnacle Bank (based in Nashville, Tennessee), First Tennessee Bank (based in Memphis, Tennessee), and Synovus Bank (based in Columbus, Georgia).
Some folks took to Twitter to share dismay int he banks stepping away from the companies, but their arguments fell flat.
It’s interesting that some people want private businesses to do what they want only when it benefits their views. It is hard to argue that these private companies should be sued for ending their business when you want private prison businesses to thrive.
The bottom line is that people do not want to know that people are financially profiting off of keeping people in prison.
Polls show the Americans favor rehabilitation over tough penalties and punishments. The mood is so favorable toward rehabilitation that even President Trump spoke about criminal justice reform.
Now, it seems activists might move their focus at for-profit bail companies.
The for-profit cash bail bond industry is notoriously racist and classist. The concept of making people pay cash to be released from jail as they await their court date disproportionately impacts low-income communities of color.