Citizens Bank stated it will wind down its financial ties with CoreCivic and The GEO Group, two companies that operate private detention and deportation facilities under contracts with U.S. Immigration and Customs Enforcement. The decision came after an intensive public campaign led by advocacy groups and left-leaning municipal governments opposing the bank’s business relationships with the private prison operators.
At least two New Jersey city councils in Montclair and Jersey City voted to withdraw municipal deposits from Citizens Bank unless it severed connections with the private prison companies. The De-ICE Citizens Bank Coalition characterized the announcement as a significant outcome for those seeking to prevent financial support for what they described as detention practices by immigration authorities.
Citizens Bank attributed the decision entirely to commercial considerations rather than political pressure. The bank noted that the federal government has announced plans to purchase facilities operated by CoreCivic and is negotiating similar acquisitions with GEO, thereby reducing the financial requirements of both companies. The bank stated in a formal 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.”
The decision reflects broader scrutiny of banking relationships during the current administration. Debanking, the practice of financial institutions terminating business relationships with clients or entities, has become a politically contested issue. Bank regulators under the Trump administration have initiated investigations into debanking practices, with potential consequences including fines or penalties for institutions found to have engaged in such activities. Citizens Bank acknowledged in its statement that all banks must evaluate regulatory and contractual obligations when determining business relationships.