May 21 JPMorgan Chase & Co announced a $100
million, five-year commitment on Wednesday to help spur bankrupt
Detroit's economic recovery.
The plan, which the bank developed over several months with
community and government leaders, includes $50 million to
finance capital projects in struggling Detroit neighborhoods and
for small businesses, $25 million to address residential
property blight and $12.5 million for job training.
"With this investment, we are putting our resources and
expertise to work to help Detroit chart a course back to
economic prosperity," JPMorgan Chase Chairman and Chief
Executive Jamie Dimon said in a statement. "We have been in
Detroit for a very long time, and we're here for the long term."
Detroit, which filed the biggest municipal bankruptcy in
U.S. history last July, has also gathered $466 million in
pledges from philanthropic foundations and the Detroit Institute
of Arts museum for a key element in its plan to adjust $18
billion of city debt. The institute, in turn, has approached
Detroit's three automakers for help in raising its $100 million
The so-called grand bargain, which also requires a $195
million lump sum payment from the state of Michigan, would be
used to ease pension cuts for Detroit retirees and protect the
museum's art work from being sold to raise money to pay city
creditors. A U.S. Bankruptcy Court hearing on the debt plan is
scheduled to begin July 24.
JPMorgan Chase's commitment also allocates $7 million to
provide support for Detroit's small business clusters and a $5.5
million investment in strategic initiatives, such as a light
rail system, that are considered essential for the city's
economic growth. The bank said it will deploy volunteers from
its work force to lend their expertise to nonprofit groups in
(Reporting by Karen Pierog; Editing by Peter Galloway)