NEW YORK (Reuters) – SunTrust Banks Inc said on Monday it will not provide future financing to companies that manage private prisons and immigration holding facilities, becoming the latest lender to distance itself from a sector that has become tied to the Trump administration’s immigration policies.
“This decision was made after extensive consideration of the views of our stakeholders on this deeply complex issue,” the Atlanta-based company said in a statement.
SunTrust - Banks - Bonds - Loans - Prison
SunTrust is one of several banks that have underwritten bonds or syndicated loans for at least one of the major private prison operators in the United States, CoreCivic Inc and GEO Group Inc.
In 2018, banks, including Bank of America Corp and Wells Fargo & Co , raised roughly $1.8 billion in debt over three deals for CoreCivic and GEO Group, according to Refinitiv data.
Banks - Pressure - Ties - Prison - Industry
Banks have been under pressure to cut ties with the private prison industry since U.S. President Donald Trump’s restrictions on immigration began raising concerns about the conditions inside detention centers. Private detention centers account for about two-thirds of the people held by U.S. Immigration and Customs Enforcement, S&P Global Ratings...
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