Following up on Monday’s post about violence in Uncle Sam’s privatized prisons, today comes work that the federal government is ending its privatized incarceration experiment, allowing all existing contracts to expire.
The reaction on Wall Street was immediate, with the stock of the most infamous contractor collapsing:
The story from BBC News:
The US Justice Department will phase out use of privately owned prisons, citing safety concerns. Contracts with 13 private prisons will be reviewed and allowed to expire over the next five years.
“They do not save substantially on costs and … they do not maintain the same level of safety and security,” Deputy Attorney General Sally Yates said explaining the decision.
The majority of US prisoners are held in state-run prisons.
On Wall Street, the stocks of private prison companies declined sharply after the news was announced. By Thursday afternoon, Corrections Corporation of America stock had plunged by nearly 50%.