There’s such an interesting article up on Bloomberg, it is kinda hard to know where to begin:
“Deutsche Bank had been Trump’s go-to lender for decades, even as other commercial banks stopped doing business with him because of multiple bankruptcies. Although the German lender’s investment bank had severed ties with Trump during the financial crisis, after he defaulted on a loan and then sued the bank, its wealth management unit continued to extend him credit.”
One wonders how one side of the bidness considers him a risk, and the other side of the bidness decided to extend him credit? You bet one does!
“But, as the New York Times first reported, Deutsche Bank had already turned down a request for a loan from the Trump Organization for work on a Scottish golf course in early 2016, during the campaign, in part because of concern that it might have to collect from a sitting president.”
Yeah, that probably would look bad.
“Top Deutsche Bank AG executives were so concerned after the 2016 U.S. election that the Trump Organization might default on about $340 million of loans while Donald Trump was in office that they discussed extending repayment dates until after the end of a potential second term in 2025, according to people with knowledge of the discussions…
The debt includes $125 million Ameros (due in 2023) for the Trump National Doral Miami resort, and $170M Ameros (due in 2024) for the Trump International Hotel in Washington and a separate loan against that ugly-ass Chicago tower. And, you know, restructuring the loan to such favorable terms might look like bribing the prznint, ahem.
“Members of the bank’s management board, including then Chief Executive Officer John Cryan, were leery of the public relations disaster they would face if they went after the assets of a sitting president, said the people, who asked for anonymity because the discussions were private. The discussions were about risks to the bank’s reputation and did not relate to any heightened concerns about the creditworthiness of Trump or his company, the people said.”
I suppose the spectacle of prising The Russian Usurper out of Merde-A-Lardo would be very unbanker-like, but then again so are allegations Deutche helped launder billions on behalf of Russian customers.
Anyway, so to sum things up: Prznint Grifter might have been looking at the ultimate check kiting scheme, the kind were he could float paying a creditor for nearly a decade and not pay interest on it, and not have any assets leveraged. Which is nice work if you can find it, amiright?
But wait? What’s that whining sound I hear:
“This story is complete nonsense,” Eric Trump, a son of the president and an executive vice president of the Trump Organization, said in an email. “We are one of the most under-leveraged real estate companies in the country. Virtually all of our assets are owned free and clear, and the very few that do have mortgages are a small fraction relative to the value of the asset. These are traditional loans, no different than any other real estate developer would carry as part of a comparable portfolio.”
Poor Little Buddy. His fidget spinner keeps breaking.
In the end, Deutsche decided not to restructure the outstanding loans and to not do any new business with the Trump Organization during Prznint Stupid’s prznintcy. Smart Thinking! Personally, I think I’d not do any banking with the Trump Crime Family until they all finish serving their time, but I’m kinda a stickler for details.