Bank of America Corp.’s Little-Known Revenue Source: U.S. Prisons

The federal prison system has its own economy, whereby inmates establish personal accounts into which money from family members and prison-based jobs are deposited. Over time, the government has turned the administration of these accounts over to banks such as Bank of America  (NYSE: BAC  ) and JPMorgan Chase  (NYSE: JPM  ) , both of which have been awarded no-bid contracts from the Treasury Department to manage various facets of this confined economic system.

It’s ironic that a mortgage field inspector was sentenced to 8 years in federal prison for fraud against Bank Of America. The court sentenced the inspector to also provide $12 million in restitution to Bank of America. While in federal prison for eight years, Bank of America will be his prison bank.

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