Private Prison Stock Rises After Donald Trump Win
What will a Donald Trump presidency look like?
According to HuffPo, Trump’s shocking election into the White House could mean bigger business for the private prison industry if the markets are correct.
The largest private prison contractor, CoreCivic ― which recently changed its name from Corrections Corporation of America ― saw its stock shoot up by more than 58 percent shortly after morning trading began. Stocks for the second largest contractor, GEO Group, rose by more than 28 percent. Over the next few hours of trading, both stocks came down somewhat from those peaks, but remained strong.
The numbers marked a sharp reversal for an industry that had seen its value plummet after the Obama administration announced in August that it would phase out the use of private contractors for Bureau of Prisons facilities. That decision came in response to a scathing report by the Justice Department’s Officer of the Inspector General, which found that overall, privatized prison facilities led to more security problems without necessarily saving money.
To add insult to injry, CoreCivic’s new duties is a contract to run an immigrant detention center in Cibola County, New Mexico, that formerly served as a federal prison. Make America great again from prison, huh?