FILE - In this Jan. 10, 2017 file photo, then-Attorney General-designate, Sen. Jeff Sessions, R-Ala., testifies on Capitol Hill in Washington at his confirmation hearing before the Senate Judiciary Committee. Attorney General Sessions has signaled his support for the federal government's use of private prisons, rescinding a memo meant to phase out their use. (AP Photo/Alex Brandon, File)
FILE - In this Jan. 10, 2017 file photo, then-Attorney General-designate, Sen. Jeff Sessions, R-Ala., testifies on Capitol Hill in Washington at his confirmation hearing before the Senate Judiciary Committee. Attorney General Sessions has signaled his support for the federal government's use of private prisons, rescinding a memo meant to phase out their use. (AP Photo/Alex Brandon, File) Credit: Alex Brandon

Attorney General Jeff Sessions signaled Thursday his strong support for the federal government’s continued use of private prisons, reversing an Obama administration directive to phase out their use. Stocks of major private prison companies rose at the news.

Sessions issued a memo replacing one issued last August by Sally Yates, the deputy attorney general at the time. That memo directed the federal Bureau of Prisons to begin reducing and ultimately end its reliance on privately run prisons.

It followed a Justice Department audit that said private facilities have more safety and security problems than government-run ones. Yates, in her announcement, said they were less necessary given declines in the overall federal prison population.

But Sessions, in his memo, said Yates’ directive went against longstanding Justice Department policy and practice and “impaired the Bureau’s ability to meet the future needs of the federal correctional system.” He said he was directing the BOP to “return to its previous approach.”