JPMorgan Committing $100 Million to Aid Revitalization in Detroit
Thoughts?
From NYT:
JPMorgan Chase, the nation’s biggest bank, will provide $100 million to help debt-ridden Detroit with housing repairs, blight removal, job training and economic development projects over the next five years, according to two people with direct knowledge of the plans.
The investment, a mix of loans and grants, will add to a growing pile of money from outside private institutions as the city nears the final, painful stages of the nation’s largest municipal bankruptcy proceeding. Detroit filed for bankruptcy protection in July, with an estimated $18 billion in long-term debt. This summer, a federal judge will decide whether to approve a plan that would allow the city to exit bankruptcy court by mid-October.In recent days, the city has been lobbying to secure nearly $200 million in funding from Michigan lawmakers, who are wary of setting a precedent by using taxpayer dollars to bail out a major metropolis. If approved, the state funding would be part of a so-called grand bargain that would also include hundreds of millions of dollars from philanthropic foundations. The money would be used to cushion pension cuts for Detroit retirees and avert the sale of the city’s art collection. The Legislature is weighing a package of bills regarding the outside funding this week.
JPMorgan’s support, previously reported by Detroit newspapers, will focus on city revitalization efforts and may help ease concerns by some legislators that Detroit could find itself in financial trouble again down the road. The institution’s chairman and chief executive, Jamie Dimon, will make a public announcement about the money with state and city officials on Wednesday. A spokesman for the bank would not discuss the matter before then.
http://www.nytimes.com/2014/05/21/us/JPMorgan-committing-100-million-ov…
its a drop in the bucket for them
Publicity stunt, after all the negative press JPMorgan has been getting lately, they needed something like this to gain good PR. Like chuck said it is a drop in the bucket for them...
Anyone can commit money...but few can use it right. Fuck me.
a whole $100m?????????
Great opportunity to buy a city on the cheap and good publicity move.
I wonder if the forthcoming bank loans JP Morgan intends to make will be disclosed by the city of Detroit. Private loan deals with banks unlike bonds or private placement of municipal securities have no statutory requirement for disclosure. The MSRB "encourages" state and local governments to disclose bank loan financing through the MSRB’s Electronic Municipal Market Access (EMMA®) website.
Let's wait and see.
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