Deutsche Bank feared that Trump Organization would default on $ 340M loan while Trump was in the office

Deutsche Bank leaders were very concerned that the Trump organization could standardize $ 340 million in loans after Donald Trump won the 2016 election. Bankers discussed extending the repayment figures beyond a possible second period to avoid having to go for a president's assets.

Top executives in the German bank, the only major financial institution that was willing to do business with Trump after a series of bankruptcies, discussed extending the repayment dates on the Trump Organization loan until 2025, when his potential others period would end, Bloomberg reported.

Trump Organization owes Deutsche Bank $ 1[ads1]25 million it spent at Trump National Doral Miami Resort in 2023, along with more than $ 200 million in loans it used on two buildings in Washington and Chicago in 2024.

According to the report, senior executives At Deutsche Bank, including CEO John Cryan, was worried about the setback they might face if the bank tried to pursue assets of a sitting president, the Trump Organization should be the default on the loans. Instead, the bank decided to restructure the loans and chose not to do anything about the company while Trump is in the office.

The New York Times reported earlier that Deutsche Bank rejected a loan request from the Trump Organization to help fund work on its Scottish golf course during the 2016 campaign, at least partially ruled out by Trump could win the election.

Trump Organization refused to apply for that loan, as well as the Bloomberg report. [19659002] "This story is complete nonsense," Eric Trump told Bloomberg. "We are one of the most subcontractors of real estate companies in the country. Almost all of our assets are free and clear and the few who have mortgages are a small fraction of the value of the asset. These are traditional loans, nothing but any another real estate developer would carry as part of a comparable portfolio. "

Deutsche Bank has a long and complicated history with Trump. It was the only bank that was willing to lend him money in the 1990s after Times reported that he was "anything but excommunicated from Wall Street" after a series of bankruptcies. While other banks refused to lend money, Deutsche Bank made Trump borrow more than $ 2.5 billion over 17 years.

Trump stopped repaying a loan during the financial crisis in 2008 and sued the bank and accused it of helping to cause the crisis. The bank cut the ties with Trump, but later lent him money again in 2010 and 2012.

The bank, whose headquarters in Frankfurt was raided last year as part of the Panama Papers survey, has been investigated by investigators .

Trump exploded in anger over inaccurate reports in December 2017 that Specialist Robert Mueller had sued information about his business relations from Deutsche Bank and demanded that the Mueller investigation be closed, The New York Times has reported. He claimed that the first news reports were wrong.

But House Democrats say they are planning to cross Trump's self-enlightened "red line" and dig deep into their finances now that they have control over the investigative committees.

"If the Special Adviser has not condemned Deutsche Bank, he cannot do much of a money laundering investigation," House Intelligence Committee rapporteur Adam Schiff told NBC News earlier this month. "So that's what concerns me – that the red line has been enforced, either by the deputy lawyer or by another party in the Ministry of Justice. But it leaves the country exposed."

Schiff announced that his committee will launch a joint survey, along with Rep. Maxine Waters Financial Services Committee, to Trump's negotiations with Deutsche Bank.

"We know that Deutsche Bank is one of the largest money laundering banks in the country, or perhaps in the world" Waters told CNBC. "And we know this is the only bank that will lend money to the US president because of his past practice. He will not show his tax return and we have some information that leads us to believe that there may have been something money laundering activity. "

Source link

Back to top button