SunTrust Won't Finance Private Prison Management Companies -- Update
July 08 2019 - 4:40PM
Dow Jones News
(Adds details)
By Allison Prang
SunTrust Banks Inc. said Monday it will no longer "provide
future financing to companies that manage private prisons and
immigration holding facilities."
SunTrust said in a statement "this decision was made after
extensive consideration of the views of our stakeholders on this
deeply complex issue."
The news was earlier reported by Bloomberg News.
SunTrust is merging with BB&T Corp., based in Winston-Salem,
N.C. The deal, when it was announced, had a value of $28.2
billion.
SunTrust told BB&T about its decision, a spokeswoman for
SunTrust said in an email. BB&T doesn't finance private
prisons, a BB&T spokesman said in an email.
A spokesman for the GEO Group Inc., one of the companies that
operates these holding facilities and private prisons, said in an
email the company has been banking with SunTrust for over a
decade.
"The divestment efforts against our company are based on a false
narrative and a deliberate mischaracterization of our role as a
long-standing government services provider," the spokesman
said.
Bank of America Corp. also recently said it was going to stop
doing business with private prisons. But Bank of America's
announcement came not long after it agreed to make a $90 million
dollar loan to GEO Group, The Wall Street Journal reported. The GEO
Group spokesman said Monday that the company has banked with Bank
of America for more than a decade as well.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
July 08, 2019 16:25 ET (20:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
BB and T (NYSE:BBT)
Historical Stock Chart
From Aug 2024 to Sep 2024
BB and T (NYSE:BBT)
Historical Stock Chart
From Sep 2023 to Sep 2024