New York City Divests Pension Funds From Private Prisons

NEW YORK (CBSNewYork) -- New York City has become the first government in the country to divest its pension funds from private prisons.

As WCBS 880's Peter Haskell reported, the stocks and bonds have been sold and the $48 million in investments has been moved elsewhere.

City Comptroller Scott Stringer thinks it is the right thing to do.

"This is a morally bankrupt industry for which there are real financial risks," Stringer said.

Stringer said private prisons sacrifice the 126,000 inmates and their humanity for the almighty dollar.

"Many lack appropriate medical care because it eats into profits," Stringer said. "So as a result, people are dying."

Stringer insisted the pension funds will suffer no financial harm.

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• Peter Haskell