"They forgot the motor city in the years of American urban renewal, but now JP Morgan is writing a $100m cheque to kickstart Detroit. Some doubt the bank’s motives"
 |
| Link to web site |
"There are all sorts of theories in Detroit for why the Wall Street banking giant JP Morgan Chase is spending $100m (£60m) to help fix parts of this city. It’s charity; it’s a secret deal with the Justice Department; it’s guilt over all the Detroiters the bank foreclosed on during the crisis; it’s a plot to privatise municipal infrastructure.
"... The [biggest] risk to the bank would be the total collapse of Detroit’s economy: the bank, which has roots in the city going back 80 years, employs 3,600 people in Michigan across 300 branches. Last year, it was the largest consumer mortgage lender in the state.
Mr Seybert says:
"The broader test is whether a big enough injection of private money can move markets to deliver positive change.
Bank capital is shareholder capital. We're not a foundation here. I feel very strongly about this. Community development needs to be sustainable, and we expect a return on our investment."
No comments:
Post a Comment