Key facts
- Citizens Bank will end its financial relationships with private prison companies CoreCivic and The GEO Group.
- The bank cited changed commercial circumstances and reduced financial needs of the companies.
- The decision follows public pressure from advocates and local governments.
- At least two city councils in New Jersey voted to withdraw their money from Citizens Bank.
- Citizens Bank stated the decision was not due to political pressure.
Citizens Bank has announced its intention to cease financial services for private prison companies CoreCivic and The GEO Group. The bank's decision comes after a significant public pressure campaign from advocacy groups and local governments, including votes by the city councils of Montclair and Jersey City in New Jersey to withdraw their funds from Citizens Bank if ties were not severed.
The De-ICE Citizens Bank Coalition hailed the announcement as a victory against banks financing human suffering related to immigration detention activities. However, Citizens Bank stated that the decision was purely a business one, driven by changed commercial circumstances and reduced financial needs of CoreCivic and The GEO Group. The bank noted that the federal government plans to purchase several facilities operated by these companies.
Citizens Bank emphasized that its decision does not reflect a change in its view of the companies' business models or operations. The bank also referenced regulatory and contractual frameworks that influence decisions on banking relationships, particularly in light of the politically charged topic of 'debanking' under the Trump administration.