Three days after Montclair voted to pull its $91.1 million from Citizens Bank over the institution’s financing of private prison companies that run immigration detention centers, the bank announced that it will end its lending relationships with GEO Group and CoreCivic — a move the bank described as a “business decision.”
While activists who pushed for Montclair’s divestment said public pressure across the region was key in the bank’s decision, Citizens Bank on Friday said it is ending its financing relationships with the prison operators because of the federal government’s recent purchase of several of the prison facilities and its plans to acquire others. The bank said this development reduces the amount of capital the prison operators require.
“Given how these companies’ capital needs and financing structures have evolved, and their reduced need for a bank with Citizens’ full range of capabilities, Citizens has determined that it is now appropriate to exit the credit facilities for these clients,” Citizens Bank said in a statement. “This is a business decision based on changed commercial circumstances and does not reflect any change in our view regarding these companies’ business models or operations.”…