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Why Private Prison Stocks Soared When Trump Got Elected


21 May 2017

THE DAILY BELL — Why did “private” prison stocks soar the day after Trump got elected?

It is almost like people in the industry knew something that the public didn’t. The former Attorney General Yates said that private prisons would be phased out. So before any cabinet members had been announced, why were stockholders betting that private prisons would not be phased out after all?

It could just be Trump’s tough on crime stance in general. But something else happened days earlier that suggests Washington insiders already knew what was going to happen.

…just before the election, two of Sessions’ former Senate aides, David Stewart and Ryan Robichaux, became lobbyists for GEO Group, one of the two largest private prison companies, and that the two were specifically engaged to lobby on government contracting.

Sessions was chosen for Attorney General on November 18, and in February 2017 announced that private prisons would not be phased out because that would have “impaired the Bureau’s ability to meet the future needs of the federal correctional system.” […]

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