NEW YORK _ The biggest U.S. bank says it will break off its relationship with the private-prison industry after deciding it's too risky.
"JPMorgan Chase has a robust and well-established process to evaluate the sectors that we serve," spokesman Andrew Gray said in an emailed statement. "As part of this process, we will no longer bank the private-prison industry."
JPMorgan Chase & Co. has been criticized for lending to Geo Group Inc. and CoreCivic Inc., which run facilities that have held immigrant families. As part of the change, JPMorgan won't extend new financing to the industry and wants to get rid of its credit exposure as soon as possible, according to a person with knowledge of the matter.
The shift comes after increased scrutiny. Protesters have been urging JPMorgan Chief Executive Officer Jamie Dimon to stop backing the sector as part of a growing chorus of critics who have been following the CEO around the country to get the bank to join their fights over a slew of social issues.
"These divestment efforts are politically motivated and based on a deliberate mischaracterization of our role as a long-standing service provider to the government," a Geo Group representative said in an emailed statement Tuesday. "Our company has never managed facilities that house unaccompanied minors, including those who may have been separated from their parents."
CoreCivic didn't immediately respond to a request for comment. Bank of America Corp., also a lender to the industry, declined to comment.
Last month, U.S. Representative Alexandria Ocasio-Cortez said she wants oversight hearings to make banks accountable for "investing in and making money off of the detention of immigrants."
Reuters reported on JPMorgan's decision earlier Tuesday.
(With assistance from Max Abelson and Lananh Nguyen.)
