Sessions as Trump Attorney General Positive for Private Prisons: Beacon

Donald Trump nominee for attorney general, Sen. Jeff Sessions, has history of "stringent" opposition to immigration, legal and illegal; is "virulently" anti-drug, and is one of the country’s "loudest opponents" to criminal justice reform efforts, Beacon Advisors writes in note.

  • Expects Sessions will act "very early" to reverse Federal Bureau of Prisons (BOP) memo to reduce, end contracts with private prisons, including CoreCivic, GEO
  • With Sessions leading policy on "law and order," doesn’t see further decreases in federal incarceration; sees potential to increase number of federal inmates if some laws were to be more vigorously enforced, including federal drug laws; would be "materially positive" catalyst for private prisons
    • Notes 2 former Sessions staffers have been paid to lobby for GEO
  • Related:
    • Nov. 18, Private Prisons Get a Boost From Trump
    • Sessions as Trump AG ‘Market Positive’ for M&A: Evercore ISI