Movers and SHAKERS
CoreCivic, Inc. (CXW)
Biden Signs Executive Order to End Use of Private Prisons by BoP
CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
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Executive Order. Yesterday President Biden signed an executive order stating "The Attorney General shall not renew Department of Justice contracts with privately operated criminal detention facilities..." Predictably, this news had a negative impact on both the private prison operators we cover — CoreCivic and The GEO Group.
But What Does the EO Mean? Not surprisingly, the EO is somewhat vague, and contradictory. First, it is unclear if the order only applies to the BoP, which would be similar to the August 2016 Deputy Attorney General's order requiring the BoP to phase out the use of private prisons or does the order include the U.S. Marshals Service, which also is part of the DoJ. The EO also mentions "prioritizing ...
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