JPMorgan backs away from private prison funding

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JPMorgan backs away from private prison funding

JPMorgan Chase & Co. had decided to halt financing private operations at detention centers and prisons, which had recently become a target of a protest on Trump Administration’s immigration policy. A company spokesman told on Tuesday (March 5th), “We will no longer bank the private prison industry,” and he also added that the decision had been a result of JPMorgan’s ongoing evaluation of costs and benefits over different industries.

JPMorgan Chase & Co. had been one of few major banks that had syndicated loans or underwritten bonds for GEO Group Inc., and CoreCivic Inc, two major private prison and detention center operators in the US. According to Refiniv data, during the last year, JPMorgan alongside Bank of America and Wells Fargo & Co.

had raised nearly $1.8 billion in debts over 3 separate deals for GEO Groups and CoreCivic. JPMorgan’s decision came forth, a month after Well Fargo had said that they would be deducing their relationship with the prison industry as a part of “environment and social risk management” process.

Business Standards Report for 2018, the Wells Fargo said, “Our credit exposure to private prison companies has significantly decreased and is expected to continue to decline, and we are not actively marketing to that sector”.