JPMorgan Chase has finally spoken about lending money towards the private-prison industry. After years of being beleaguered by activists and shareholders, the company has decided to stop banking with private prisons. This comes after much pressure from concerned citizens and numerous protestors who have long been urging them to stop lending money to GEO Group and CoreCivic.
The biggest bank in the United States, JPMorgan Chase & Co. has been under fire for funding GEO Group and CoreCivic. These two prison facilities are known for running immigrant detention centers and other private prisons within the country. Forbes reports that these companies involved in the private prison industry profit when they put more people behind bars, which is the reason why these corporations have pushed for a stricter criminal justice system.
The decision of JPMorgan to stop its business with the private prison industry comes at a pivotal time in history. According to Reuters, the move could urge other lenders to take similar steps. Likewise, this company move puts the spotlight on other banks and financial institutions such as Bank of America, SunTrust, and many more who are still remain connected with private prisons, notes Forbes.
In January 2019, Reuters reports that Wells Fargo has also taken steps to reduce its involvement with the said industry.
Bloomberg reports that while Geo Group and CoreCivic have expressed their disappointments about this latest move, JPMorgan Chase is adamant about staying away from these sectors. Furthermore, it wishes to stop its role as a lender and backer as soon as possible.