Friday, October 24, 2014
Inquirer Daily News

JPMorgan offers Philly emergency cash - at a price

JPMorgan Chase & Co., almost the only big U.S. bank that can still afford to lend big piles of money, has approached cash-strapped Philadelphia with an offer to lend the city $275 million at 3% yearly interest to help get the city through November

JPMorgan offers Philly emergency cash - at a price

JPMorgan Chase & Co., almost the only big U.S. bank that can still afford to lend big piles of money, has approached cash-strapped Philadelphia with an offer to lend the city $275 million at 3% yearly interest to help get the city through November, Mayor Nutter said in a statement this afternoon.

The city would use most of the money to pay vendors and contractors it's been stiffing since July. "As soon as" the stalled sales-tax and pension-reform measure (House Bill 1828) is passed by the General Assembly, the City expects to borrow from the money markets "at a lower rate," Nutter's statement noted. But if Philadelphia can't repay JPMorgan by Dec. 1, the interest rate jumps to 8 percent.

JPMorgan has made similar offers to California, which is using $1.5 billion in 3%, no-fee JPM money to tide it over till revenues rise this fall; and New Jersey, which is sitting on a $2 billion JPM credit line.

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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