As has been the case on issues such as global warming, oil and gas pipelines, and gun manufacturing, the radicals’ have increasingly targeted big banks, which they attempt to shame and coerce into de-funding businesses associated with projects with which they disapprove. Those financial institutions, averse to unpleasant public relations, often cave to their demands.
One recent example of their capitulation is the funding of private companies that contract with the federal government to manage prisons and detention centers for immigrants who have entered the United States illegally. Two of these companies, CoreCivic and GEO Group, have particularly drawn the ire of the Left because of their contracts with U.S. Immigration and Customs Enforcement (ICE).
What’s so evil about ICE and the private contractors that provide their services, in the eyes of progressives? First, they are “for-profit,” which is inherently immoral to socialists. There has also been an increasing outcry against “mass incarceration” that led to criminal justice reform policies, which many conservatives – including President Trump – have helped enact. And when it comes to immigration, the Left is outraged by the President’s policies of detention of migrants who cross the U.S.-Mexico border illegally and/or declare a need for asylum, which takes a long time to verify for legitimacy. The detention policies have led to the spread of imagery of “children in cages” that progressive groups have misrepresented, exaggerated and exploited for political gain, in many instances.
“We will not allow our government to separate innocent families. We will not allow private companies to profit off the suffering of children,” protesters told the Miami Herald in December. “We will not allow their workers to sit undisturbed in air-conditioned offices while people are deprived of their humanity.”
Hence the attacks on the big banks that finance the facilities for the likes of CoreCivic and GEO Group, so government can manage the immigration influx. According to far-left website Truthout, JPMorgan Chase, Wells Fargo, Bank of America, and SunTrust (now called “Truist Bank” following its merger with BB&T Corp.) are among major banks that have “have made broad public commitments to no longer provide new financing to the private prison industry after current financial agreements expire.”
In other words, those cowardly corporations caved to the Left’s thuggish threats.
Now, five Republican Senators – Marsha Blackburn of Tennessee, Tom Cotton of Arkansas, Kevin Cramer of North Dakota, Ted Cruz of Texas, and Marco Rubio of Florida – hope to install a spine with these financial giants. They have introduced the Financial Defense of Industrial Contractors (FDIC) Act, which would provide a significant disincentive to breaking ties with the government service providers. The big consequence: You lose your government-backed insurance. A press release from the senators explained:
Specifically, the FDIC Act would amend the Federal Deposit Insurance Act to remove Federal Deposit Insurance Corporation (FDIC) insurance from banks with assets over $50 billion and which refuse to provide banking services to firms with an active federal contract which are otherwise creditworthy and law-abiding. If a bank violates this standard, the FDIC Board of Directors would begin the FDIC insurance termination process pursuant to the Federal Deposit Insurance Act, including a notice of intent, FDIC board hearing, and a transition phase of up to two years.
“Some large banks are weaponizing their essential position in the economy to discriminate against companies who assist our immigration law enforcement operations,” Sen. Cramer said. “If they would like the right to deny service to certain companies, the federal government should have the right to withdraw its taxpayer-funded guarantees.”
The denial of funds for the contractors working with ICE is critical to national security. Last year the Trump administration released nearly 400,000 illegals into the country, according to U.S. Customs and Border Protection. Part of the reason for this was because ICE lacked detention space, especially when migrant caravans surged at the border in early 2019 and overwhelmed facilities.
Should the FDIC Act get through the Senate, it would stand no chance with the open-borders Democrat-led House of Representatives. The November election could change that, however.
“The Immigration and Customs Enforcement Agency employs contractors to help enforce the immigration laws that keep Americans safe,” Sen. Cotton said. “By denying critical financial services to ICE contractors, big banks have hobbled ICE’s efforts to protect Americans. These banks shouldn’t receive public funding if they’re putting the public at risk.”