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Investment Banking

Bank of America cut ties with private prisons weeks after lending to one

Bank executives want to influence corporate behavior but cutting off all lending to an entire industry has proven complicated

Bank of America said last week it would stop doing business with private prisons. What the bank did not say: It had recently agreed to lend $90m to one of the largest companies in the business through 2024.

Bank chiefs today want to do more than make loans to creditworthy borrowers. Encouraged by employees, executives are using their trillion-dollar balance sheets to influence corporate behaviour. Many big shareholders support that approach.

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