JPMorgan Chase investing in Detroit's community

The General Motors (GM) world headquarters is seen February 24, 2013 in Detroit, Michigan. The city of Detroit has faced serious economic challenges in the past decade, with a shrinking population and tax base while trying to maintain essential services. JPMorgan announced it will direct $100 million in investments at Detroit for homes, businesses and job training. 

 

JP Morgan Chase's $100 million dollar pledge to invest in the Detroit community follows a $15 million investment by Goldman Sachs late last year.

Robin Boyle, a professor of urban studies and planning at Wayne State University, says the investments don't necessarily signal that Detroit is the new darling of Wall Street, but the funds could help the bankrupt city focus on the future, while city managers grapple with billion dollars of debts. 

Terry Simonette, president and CEO of Capital Impact Partners, a non-profit community development financial institution that is receiving $20 million in loans and $5 million in grant money from Chase, says the group will use the money to help spur development in three Detroit neighborhoods: Northwest, Southwest and Jefferson East. 
"As people re-occupy those neighborhoods they need food, bakery, they need coffee shops, they need supermarkets," says Simonette.

About the author

Noel King is a reporter for Marketplace's Wealth and Poverty desk.

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