SunTrust Pulls Out
SunTrust Banks Inc. will stop financing operators of private prisons and immigration holding facilities, it said on Monday, becoming the latest lender to distance itself from a sector associated with the Trump administration’s policies.
The Atlanta-based company said in a statement, “This decision was made after extensive consideration of the views of our stakeholders on this deeply complex issue”.
SunTrust is one of several banks that have underwritten bonds or syndicated loans for at least one of the major private U.S. prison operators.
Banks have been under pressure to cut ties with the private prison industry since U.S. President Donald Trump’s restrictions on immigration raised concerns about detention center conditions. The centers account for about two-thirds of the people held by U.S. Immigration and Customs Enforcement, S&P Global Ratings estimated last year.
Other banks including; Wells Fargo, JPMorgan Chase & Co and Bank of America made similar commitments to phase out relationships with private prison companies.