Bank of America cut ties with companies that run private prisons and detention facilities after officials visited a facility where migrant children are being held in Florida.
The company told CNN that while it appreciates "steps they have taken to properly execute their contractual and humanitarian responsibilities," it ultimately decided to "exit the relationships."
"Lacking further legal and policy clarity, and in recognition of the concerns of our employees and stakeholders in the communities we serve, it is our intention to exit these relationships," a company spokesperson said.
The move came just one day after bank officials toured the Homestead center, a facility near Miami where child migrants are being detained for long periods of time in unsanitary and unsafe conditions.
Move came after Miami Herald report:
The company’s decision came after the Miami Herald reported that Bank of America was financing Caliburn, the company that runs the Homestead facility under a government contract.
According to the report, Bank of America gave the company a $380 million loan and extended it a $75 million credit line.
The Herald noted that the facility is not a “prison” but "protesters say it functions as one. The minors held inside are not allowed to leave."
Banks cut ties with private prisons:
The move comes as numerous banks distance themselves from the private prison industry.
"CoreCivic and Geo Group, the two largest private prison operators in the US, have already felt the effects of a growing distrust against their industry. JPMorgan Chase announced it would no longer finance private prisons and detention centers in March — a major blow for the two companies that have received at least $254 million in debt from the bank," Vox reported. "The two private prison operators have also lost funding from Wells Fargo, thanks in part to pressure from activists and lawmakers. When Wells Fargo CEO Timothy Sloan was questioned by the House Financial Services Committee for their business practices March 13, Rep. Alexandria Ocasio-Cortez (D-NY) criticized the bank for “financing the caging of children” — a claim that Sloan denied. Soon after, a statement from Wells Fargo reiterated that the bank had already cut ties with CoreCivic and was on track to withdraw from financing Geo Group as soon as possible."
