JPMorgan to Invest $100 Million in Detroit, Detroit News SaysElizabeth Campbell
JPMorgan Chase & Co. plans to invest $100 million to revitalize Detroit, the Detroit News reported, citing three people with knowledge of the plan.
JPMorgan, the biggest investment bank by revenue, plans to back firms that promise to provide jobs and invest in the city, which is going through the largest U.S. municipal bankruptcy, the newspaper reported today. The investment, over five years, will include loans and grants, the Detroit Free Press reported.
The move follows as much as $15 million in loans to Detroit small businesses by Goldman Sachs Group Inc., and signals Wall Street’s rising interest in Michigan’s largest city, which faces $18 billion in long-term debt.
Jamie Dimon, chairman of New York-based JPMorgan, is expected to meet with Mayor Mike Duggan, a representative of Republican Governor Rick Snyder’s office, and possibly billionaire Warren Buffett before the plan is detailed on NBC’s “Today Show” tomorrow, according to the Detroit News. Dimon discussed the plan with Snyder in April in New York, the newspaper reported.
JPMorgan’s program would provide guidance and services including consulting.
Duggan and Steve O’Halloran, a JPMorgan spokesman, declined to comment on the report. Buffett didn’t immediately respond to a request for comment sent to an assistant.
Goldman CEO Lloyd Blankfein said in November that the New York-based bank would make loans to small businesses in the Detroit area and provide education and other assistance as part of its 10,000 Small Businesses initiative with Buffett.