JPMorgan Chase Pledges $100 Milliion to Detroit Over Next 5 Years: Urban Development, Blight Removal, Public Transportation
JPMorgan Chase, America's largest bank, has pledged to invest more than $100 million in a combination of loans and grants over the next five years in Detroit. The announcement was made on Wednesday by Jamie Dimon, the bank's chairman and CEO, at a luncheon he attended in Detroit. With this move, the bank will be able to help Detroit to conduct urban development, job training, blight removal and house repairs, vital public transportation, and small business assistance in the city.
The municipality of Detroit needs the help. The city is deep in debt, owing approximately $18 billion, and has consequently declared bankruptcy. A bankruptcy protection by the city was filed in July 2013 and is waiting for a decision from the federal judge this summer.
Detroit news agencies reported that the support from JPMorgan is intended to revitalize the municipality and shows faith in the city's revival by powerful outside companies.
A statement was released by JPMorgan on what projects will be supported by their $100 million commitment. In their statement posted online by The Detroit Press, the bank stated that Detroit will be able to conquer the considerable challenges it is facing at the moment. JPMorgan believes that the city will be able to rebuild itself with new jobs and investments for its constituents.
According to the bank, 50 percent of the investment will be for small community projects. Local groups like the city's Blight Removal Task Force and Land Bank Authority will be given $25 million. The remaining amount is divided into:
- $12.5 million for training the workforce
- $7 million for assisting small-scale businesses
- $5.5 million for economic development projects like a streetcar system.
This aid comes after $250 million for another five-year plan was announced by the bank last December to support job-skills training programs in big municipalities across the country including Detroit, likely in an attempt to improve its image after it fleeced billions of dollars from investors through its sale of questionable mortgage securities before and during the recent financial crisis. These donations are dwarfed by the $13 billion settlement the bank recently reached over its misdeeds.