Jersey City Pulling City Funds From Citizens Bank Over Delaney Hall Financing: Officials

JERSEY CITY, NJ — Jersey City has begun pulling its funds from Citizens Bank over the bank’s financial support for two for-profit companies that fund prisons — including the controversial Delaney Hall in Newark — officials confirmed this week.

But the bank chain announced Friday that it will no longer be involved with financing for CoreCivic and The GEO Group, the country's largest private prison firms.

The bank said the decision was related to "business" and not policy.

A spokesperson for Mayor James Solomon said Thursday that the city is still in the process of removing its funds from the bank.

The GEO Group operates Delaney Hall, an ICE detention facility in Newark whose detainees recently engaged in a hunger strike to protest conditions at the facility.

“Citizens Bank made a choice to finance the caging of human beings for profit. Jersey City is making a choice too: we will not be complicit,” said Solomon last month.

He added, “As long as institutions continue to bankroll the private prison industry and the suffering it depends on, we will use every tool at our disposal to ensure Jersey City taxpayers are not financing the abuse of our neighbors."

Councilman Jake Ephros, whose video of an ICE operation in Jersey City went viral earlier this year, supported the announcement, as did Councilman Joel Brooks.

Jersey City is the second largest city in the state and has a sizeable immigrant community. More than 40 percent of the residents were born in another country, according to the U.S. Census.

Citizens Bank at first gave Patch a statement last month saying, about Jersey City, “We are disappointed they have taken this step because the facts show that we have a strong record of corporate responsibility. We are proud of our commitment to clients, customers, and communities across the country and across industries ... At the same time, it is not the role of banks to set public policy. Our responsibility is to follow the law and apply our standards consistently as we serve all of our clients.”

Will Stop Financing

On Friday, the company announced that they will stop helping the two firms get financing, but not because of policy issues. They said the firms no longer need their help, because the federal government will buy the prisons. Rather than private financing, more funds will come from tax dollars.

"The federal government recently purchased several facilities owned by CoreCivic and has indicated its intention to purchase a number of others owned by GEO," the bank said in a statement on Friday. "This has the effect of reducing the required capital of the companies going forward, as they will largely operate as service companies ... Citizens has determined that it is now appropriate to exit the credit facilities for these clients.

"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."

They added, "Citizens has been disappointed that the activists have dragged it into what is largely a political matter. Public characterizations of Citizens by activist groups, including as it relates to our commitment to immigrants and to communities, do not reflect who we are or the record we have built. Citizens is deeply committed to serving our customers, colleagues, and communities. That commitment includes funding for 140 nonprofit partners serving immigrant communities across multiple markets."

Local Protest Planned

Meanwhile, a Hoboken-based group planned to protest the local branch of Citizens' Bank on River Street, near the waterfront, on Saturday.

Hoboken Resist plans to protest from 10 to 11 a.m. at 221 River St., they said.

It's part of an ongoing "De-ICE Citizens' Bank" campaign, they said.

Other groups have encouraged Citizens to cut ties with the companies.

People interested in the protest can sign up or get more information here.