Private prison operators are profiting from the deepening immigration crisis in the United States. Companies like CCA and GEO Group have seen steady growth due to the countryʼs policy of locking up immigrants in privately-managed detention facilities. These companies have spent millions to shape this policy, win contracts, and ensure that the rules are fixed in their favor – all at the expense of some of the countryʼs most vulnerable people.
These companies would not be positioned to profit from the countryʼs immigration crisis without the help of prominent Wall Street banks. The industry is capital-intensive and requires enormous amounts offinancing from banks that sit at the countryʼs financial and economic crossroads. One bank, in particular, has distinguished itself from the competition as an investor in and lender to the industry:Wells Fargo.
This report details the financial ties between Wells Fargo and the top private prison operators in the country: Corrections Corp of America (CCA), GEO Group, and Management and Training Corp (MTC). The information compiled in the report shows that as a lender and investor, Wells Fargo has provided critical support for the private prison industry.
In fact, Wells Fargo is unique among its peers in the financial industry in having strong financial connections to the countryʼs three largest private prison operators:
• CCA. Wells Fargo is a major lender to Corrections Corp of America (CCA), the largest private prison company in the country, acting as the syndication agent and issuing lender on CCAʼs $785 million line of credit.
• GEO. Wells Fargo is a major investor in GEO Group, with $95.5 million invested through itsmutual funds, and serves as trustee for $300 million of the companyʼs corporate debt.
• MTC. Wells Fargo is a lender to Management & Training Corp (MTC). MTC is a private company and so it is difficult to find data on its investors and lenders, but Wells Fargo is listed as a lender to MTC in a Utah UCC filing.