Deutsche Bank, which loaned millions to Trump, ‘tired of negative publicity’
The 150-year-old bank has nearly $340 million in loans to The Trump Organization that are due in 2022.
Deutsche Bank, the German-based, multi-national financial institution, is seeking to sever all its ties with President Donald Trump after years of negative publicity.
The 150-year-old bank has approximately $340 million in outstanding loans to the president’s private company, The Trump Organization, three loans that will come due in two years. The sum is a mere fraction of the more than $2 billion Deutsche has lent Trump over their decades-long relationship.
In exclusive reporting, Reuters says an internal management committee within the bank has “discussed ways which it could rid the bank of these last vestiges of the relationship.”
According to the report, Deutsche Bank is considering selling the Trump loans to a secondary market. However, that idea does not appear likely to gain traction, as it is improbable another buyer would want the problems that are attached.
Prosecutors in New York State subpoenaed the bank in August for the president’s records tied to the ongoing criminal investigation into how The Trump Organization, which is helmed by the president’s sons, accounted for hush-money payments to porn star Stormy Daniels.
The probe is also reviewing “potentially improper financial transactions by a variety of individuals and entities over a period of years,” according to a court document quoted by CNBC.
Ongoing U.S. federal and state investigations and their accompanying bad press have been labeled as “serious collateral damage” in Deutsche Bank’s relationship with the Trumps.
Massachusetts Sen. Elizabeth Warren told Reuters she plans to continue her push for a probe into the relationship to the next administration, whether or not Trump wins the 2020 presidential election, a prospect that appears less and less plausible.
“You bet I’m going to continue to fight for accountability and strong enforcement of our banking laws,” she said, “especially for giant institutions like Deutsche Bank.”
Warren is reportedly also seeking the job of secretary of the Treasury Department if Democratic presidential nominee Joe Biden wins the White House.
It is believed that the repayment of the Deutsche Bank loans was a motivating factor in Trump’s push for re-election. If he was re-elected, it would be more difficult for the bank to collect on the $340 million, which was reportedly personally guaranteed by Trump.
However, if Trump was to lose, it would be easier for the bank to demand repayment or foreclose on the properties he used as collateral.