Over the past decade, Lehman has become the most important ally of the private prison industry by managing major money deals--including credit agreements, bond issues and stock offers.
PLEASE HELP US CONVINCE LEHMAN BROTHERS TO KILL TWO MAJOR DEALS--A NEW STOCK OFFERING FOR CORNELL COMPANIES AND A DEBT-REFINANCE FOR CORRECTIONS CORPORATION OF AMERICA--THAT WILL PUT THE PRIVATE PRISON INDUSTRY BACK ON ITS FEET.
Dear friends,
We are writing on behalf of Not With Our Money!--a (multi)national network of student and community activists working to end prison profiteering--to request your help on an urgent matter of justice.
We know you’re aware of the staggering increase in the number of people behind bars that has taken place in the U.S. over the last thirty years. We know you’re also aware of the growing role of for-profit private prison companies in fueling that expansion.
You may also know that, in the last couple of years, the leading private prison companies have been stuck with empty prisons and falling stocks as a result of their own operational disasters and a slowdown in the rate of prison expansion at the state level.
Unfortunately, however, things are looking up for the prison industry. In the last year, the Federal government has stepped in to bail out the private prison companies with lucrative, multi-year contracts to house immigrant prisoners--almost all of whom have been convicted of violating immigration laws or of low-level drug crimes.
And now, post September
11, the industry is eagerly anticipating a flood of immigrant detainees and
prisoners as a result of harsh new counterterrorism laws and policies. In a
third-quarter conference call, Steve Logan, the CEO of Cornell Companies--the
#3 private prison company--observes:
“I think it’s clear that since September 11 there’s a heightened
focus on detention… more people are gonna get caught. So I would say that’s
positive… The other thing that you’re seeing that to be honest with
you I have no idea how this is going to impact us but it’s not bad it can
only be good is with the focus on people that are illegal and also from Middle
Eastern decent in the United States there are over 900,000 undocumented individuals
from middle eastern decent. That’s, keep in mind, that’s half of our
entire prison population. That’s a huge number, and that is a population,
for lots of reasons that is being targeted. So I would say the events of 9/11let
me back up--the federal business is the best business for us. It’s the
most consistent business for us and the events of September 11 is increasing
that level of business.”
In order to take advantage of the “opportunities” provided by new
Federal Bureau of Prisons contracts and the “war on terrorism,” however,
the private prison companies need the help of Wall Street to shore up their
finances and acquire new capital for prison expansion.
That’s where the investment bankers at Lehman Brothers come in. Over the past decade, Lehman has become the most important ally of the private prison industry by managing major money deals--including credit agreements, bond issues and stock offers.
Now, Lehman is about to conclude two deals that will help put the industry on solid financial footing. First, Lehman is the lead underwriter for a new offering of Cornell stock that will raise the company an estimated $50 million--freeing up capital for the construction of a new immigrant prison in McComb, Mississippi. Second, Lehman is the managing agent for CCA’s $1 billion credit agreement, which must be renegotiated by January 1, 2002.
We need to stop Wall Street from giving the private prison industry a blank check to profiteer on the misery of poor communities and the tragedy of September 11. We need to let Lehman know that their support for the private prison industry unacceptable, and its continuation will put their other business--which includes buying and selling higher education and other municipal bonds--at risk.
It won’t be easy, but we know it can be done. In April 2000, students at ten colleges and universities launched a campaign to force CCA’s largest investor, French multinational Sodexho Alliance, to sell its shares. In a little over a year, the company divested under pressure from students at more than 60 campuses. Now it’s Lehman’s turn, but this time, the students are joined by community-based organizations that are fighting for the rights of immigrants, people of color, low-income people, prisoners, etc.
But we need your help, in one or more of the following ways:
First, sign on to the campaign as an individual, or if possible, as an organization. Signing on simply means that you agree with the demand that Lehman stop financing private prisons.
Second, contact Lehman Brothers and let them know how you feel. Send a letter (use ours as a boilerplate or make your own) that explains why you’re concerned and how you’re connected to institutions with which Lehman does business (we can help with the latter). Please make sure to send us a copy of the letter and let us know about any contact you make.
You can contact Richard Fuld, Chairman and CEO at:
201.524.2000 (Switchboard-
ask for Richard Fuld's office)
212.526.3317 (Fax)
rfuld@lehman.com (we don't know he reads it, so you may want to call and fax
as well)
Third, please help us get the word out to your allies and educate your constituents about Lehman, private prisons and the prison-industrial complex in general.
Fourth, work with us to put pressure on Lehman Brothers and on Wall Street. We will be happy to work with you to find ways to get you and/or your members actively involved. One of the activities we’re planning is a Day of Action and Education on and around Valentine’s Day 2002. It would be great if you could sign on to the day of action as well and participate in some way.
If you’re willing to help in any way, even if it’s just by signing on to our letter, please contact us. Also, if you want more information on the issue, we have a complete package of fact sheets and articles that we can e-mail, fax or mail to you.
Thanks for your support,
Not With Our Money!
P.S. A letter to Lehman
Brothers follows, along with information on the Lehman-private prison connection.
If you want additional information, we would be happy to provide a complete
e-mail package of fact sheets and articles. Just contact us at: 646.486.6715
of nwom@nomoreprisons.org.