Tired of the bad press and global scrutiny – and owe the Trump Organization hundreds of millions of dollars – Deutsche Bank management is trying to find a way to sever ties with President Donald Trump after Tuesday’s election, Reuters revealed, citing three senior officials at the German investment bank.
The Trump organization did not respond to Reuters‘requests for comment and Deutsche Bank and the White House declined to comment. The president refused to part with his business empire when he took office in January 2017, but the Trump Organization – “a rat’s nest of hundreds of ambiguous limited liability companies” – is now run by his adult sons, Don Jr. and Eric, and CFO Allen. Weisselberg.
While Deutsche Bank has loaned Trump more than $ 2 billion since the 1990s, the Trump Organization currently owes the bank about $ 340 million for three loans against its golf course in Miami and hotels in Washington, DC. and Chicago, Reuters reports. Although the conglomerate has made interest payments, all of the principal is unpaid and the loans, personally guaranteed by the president, are expected to mature in 2023 and 2024.
A bank executive committee recently discussed how to sever ties with Trump, whose relationship with the bank has sparked investigations and negative publicity that a senior executive called “serious collateral damage,” according to the bank. ‘Press Agency. Although the sale of Trump’s loans has been discussed, a bank official explained that the proposal is not popular because it is unclear who would be willing to buy them.
The bank’s final decision on Trump will be based on the outcome of the November 3 election in which the president faces Democratic candidate Joe Biden, Reuters reports, explaining how loans can be factored into Trump’s efforts to secure a second term.
“If Trump is not in power, Deutsche Bank executives believe it would be easier for them to demand repayment, seize if he is unable to repay or refinance him, or d ‘trying to sell the loans “, according to Reuters. “Since Trump has personally guaranteed all the loans, Deutsche Bank could also seize the president’s assets if he is unable to repay.”
The news agency adds:
If the Republican president loses and Democrats take control of the White House and Congress, senior executives at Deutsche Bank believe congressional investigations that have stalled amid a legal battle over access to Trump’s financial records could be rejuvenated, the three bank officials said.
In this scenario, however, Deutsche Bank executives believe they will also have more freedom to process the loans and end their relationship with Trump, officials said. They hope it might help reduce some of the scrutiny, they said.
However, at least one federal lawmaker who has previously called for an investigation into the bank’s money laundering controls and its relationship with the Trump family has said it has no plans to back down. Senator Elizabeth Warren (D-Mass.) Said Reuters, “You bet I will continue to fight for accountability and strict enforcement of our banking laws, especially for giant institutions like Deutsche Bank.”
The exclusive Reuters report on election day came after the New York Times exposed information about the president’s long relationship with Deutsche Bank as part of the newspaper’s ongoing round of investigations, based in part on more than two decades of tax data. Warren was among those who lambasted the bank and others for forgiving $ 287 million in debt primarily related to Trump’s Chicago skyscraper:
Trump, powerful lenders like @German Bank to write off $ 287 million in debt from its lousy real estate deals – but it won’t lift a finger to help families facing eviction or foreclosure during this crisis. Donald Trump only cares about helping Donald Trump. https://t.co/yskm6GfM86
– Elizabeth Warren (@SenWarren) October 28, 2020
Trump has had $ 287 million in debt canceled since 2010.
$ 287 million.
The rich play by a different set of rules than the rest of us. Https://t.co/I7rpM1EH1j
– Tax market (@taxmarch) October 28, 2020
Even after Trump sued Deutsche Bank, accusing him of going after him, the bank agreed to loan him an additional $ 99 million – more than double what was previously known – so that he can repay what he still owed to the bank.https: / /t.co/XeCePqd2Fa
– Citizens for Ethics (@CREWcrew) October 28, 2020
The Times highlighted the revelations about the president’s financial woes with Trump International Hotel & Tower in Windy City as “the latest example of his ability to strengthen large financial institutions and exploit the tax code to cushion the blow of his repeated business failures.” .