GEO Group Runs Out of Banks as 100% of Banking Partners Say 'No' to the Private Prison Sector

[babylonsister]

Sep 30, 2019, 07:33pm
GEO Group Runs Out of Banks as 100% of Banking Partners Say ‘No’ to the Private Prison Sector
Morgan Simon
This shift represents an estimated shortfall of 87.4% of all future funding to the private prison ...


All of the existing banking partners to private prison leader GEO Group have now officially committed to ending ties with the private prison and immigrant detention industry. These banks are JPMorgan Chase, Wells Fargo, Bank of America, SunTrust, BNP Paribas, Fifth Third Bancorp, Barclays, and PNC.

This exodus comes in the wake of demands by grassroots activists — many under the banner of the #FamiliesBelongTogether coalition — shareholders, policymakers, and investors. Major banks supporting the private prisons behind mass incarceration and immigrant detention have now committed to not renew $2.4B in credit lines and term loans to industry giants GEO Group and CoreCivic.

This shift represents an estimated shortfall of 87.4% of all future funding to the industry, which depends on these bank credit lines and loans to finance their day to day operations. Together, these banks commitments — alongside a federal judge’s block on the Trump administration's plans to expand family detention this weekend, new policy initiatives such as California ending all contracts with private prisons, and Democratic primary candidates publicly raising the idea of a federal ban on for-profit incarceration — lead many to speculate a threat to the survival of the private prison industry all together.

more...

https://www.forbes.com/sites/morgansimon/2019/09/30/geo-group-runs-out-of-banks-as-100-of-banking-partners-say-no-to-the-private-prison-sector/?fbclid=IwAR35KuvfKQPN_tNBJXeaQxW7G5DEAZzCGU1M59vlh7mAD0fmzbTFEV-twds#362b7bf32986

[Wounded Bear]

1. Good. I can't think of a more ugly face for Capitalism than for profit prisons...nt

[fleur-de-lisa]

2. K&R

[Phoenix61]

3. I think that grassroots helped.

However, I also think they realize it’s just a matter of time before civil lawsuits start getting filed and GEO Group declares bankruptcy to avoid make the payouts.