JPMorgan Chase to invest $100 million in Detroit over the next 5 years

JPMorgan Chase plans to invest $100 million to Detroit development and infrastructure over the next 5 years

Detroit is, and has been, in a crisis and is arguably the most financially troubled city in the United States. Unsurprisingly, the city has lost more than half of its population over the past 50 years. The result of this drastic change in population levels involves three factors: first, Detroit has overestimated its revenue; second, the city has spent more than what it takes in; and third, it has borrowed money to pay off its debt. In July 2013, Detroit became the largest U.S. city to file for bankruptcy and cited a whopping $18 billion in unmanageable long-term liabilities.

These aforementioned factors, along with Detroit’s extensive developmental issues, have given Jamie Dimon, Chairman and CEO of JPMorgan Chase, enough reason to invest $100 million into the city over the next five years. According to Dimon, the bank has had a history in investing in various communities throughout the world – and Detroit is no exception.

The bulk of the money will be divided up in both loans and grants and will include funding for blight removal, mortgage loans, and thorough job training for Detroit residents.

In an interview conducted with Matt Lauer on the Today show this week, Dimon mentioned that, “We’re doing this to grow investments, to grow the city, and create a healthy and vibrant city.”

When asked about whether this move is motivated by publicity, Dimon fervently denied that claim.

Only time will tell whether the hefty investment will make a notable difference in Detroit’s growth (in both infrastructure and employment) and in the city’s overall attractiveness.

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