Detroit News just made headlines of JPMorgan Chase & Co. (JPM) planning to invest $100 million to revitalize Detroit. According to a report by Detroit News, three people already have knowledge of the investment and revitalization plan.
JPMorgan is the biggest investment bank by revenue, according to Bloomberg. The company plans to back firms and they have promised to provide jobs and invest in the city. As of now, the city is reportedly under the largest U.S. municipal bankruptcy, Detroit News reports today. The investment will reportedly consist five years, with loans and grants, says the Detroit Free Press.
The investment move as reported by Detroit News follows as much as $15 million in loans to Detroit small businesses by Goldman Sachs Group Inc. (GS), and signals Wall Street's rising interest in Michigan's largest city, which reportedly faces $18 billion in long-term debt, according to Bloomberg.
According to the Detroit News, Chairman Jamie Dimon of New York-based JPMorgan will be meeting with Mayor Mike Duggan, a representative of Republican Governor Rick Snyder's office, and possibly also billionaire Warren Buffett before the plan is detailed on NBC's "Today Show" tomorrow. The newspaper also reported that Dimon has discussed the plan with Snyder in April in New York.
JPMorgan's revitalization program, as reported in Detroit News, would definitely provide guidance and services which also includes consulting.
JPMorgan Spokesman Duggan and Steve O'Halloran declined to comment on the report by Detroit News. Meanwhile, Buffett didn't immediately make any response as to the request for comment sent to an assistant.
CEO Lloyd Blankfein of Goldman said in November that the New York-based bank would make loans to small businesses in the Detroit area in order to provide education and other assistance.
Detroit News says that these actions will reportedly be part of its 10,000 Small Businesses initiative with Buffett.
This article is copyrighted by Travelers Today, the travel news leader
