Infamous multinational money lender Deutsche Bank finally breaks ties with US President Donald trump. At least they would like to do it as soon as possible after Tuesday’s election.
The relationship between the German credit house and the repeatedly failed construction tycoon is long and in fact somewhat tortuous – it began in the 1990s. But the close ties are now considered “serious collateral damage.” According to one of those anonymous senior executives – a distraction that apparently isn’t worth what the bank originally got by lending money to a family that didn’t really pay. repay their loans.
Explosive Reuters report says, the decision came after a constant stream of bad press related to the bank’s close and often inexplicable relationship with the 45th president.
This report, by Matt Scuffham, Tom sims, and John O’Donnell quotes three anonymous “senior bank officials with direct knowledge of the matter” and bluntly states that the bank would like to get rid of the “last vestiges of the relationship” with Trump.
And it is apparently not all unnecessary chatter.
The mega-bank Reputational Risk Management Division has reportedly held a series of meetings over the past few months to determine how exactly the financial institution can emerge from the president’s huge and heavily subsidized shadow.
One such suggestion was made by bank executives was that the president’s outstanding loans – currently over $ 340 million – be sold in the secondary loan market. This idea, however, was more or less dismissed because the bank couldn’t think of anyone who would actually buy the loans and endure the additional bad press of taking the Trump risk – financial and otherwise.
And some of this bad press has taken on expressly scandalous dimensions, especially in recent months.
As Law & Crime previously reported, Justin kennedy, the son of the former United States Supreme Court justice Anthony kennedy, has previously helped Trump and his family business secure nearly $ 700 million in loans to develop a skyscraper in Chicago, despite the developer’s long history of defaults on commercial loans.
At the time, young Kennedy was leading the bank’s commercial real estate team, but he was also well connected to New York’s affluent elite. Close friends with Ivanka trump and Jared kushnerKennedy overlooked the Patriarch’s repayment weaknesses in part because of the “Trump family’s commitment to the project,” which meant Ivanka – not Donald – would be at the helm.
This loan was eventually extended. But, perhaps not surprising to anyone involved in the transactions, Trump was unable or unwilling to repay by the time it matured in 2008. The relationship then fell apart. deteriorated to the point that a legal battle erupted between Trump and the bank over his inability to repay the original loan. This lawsuit was finally settled – over the course of almost two years. And, in 2010, Trump and the bank were on loan terms again.
To date, Deutsche Bank has loaned Trump more than $ 2 billion.
According to Reuters, the bank aims to end its relationship with Trump, at least in part, because it believes there is currently too much legal oversight in sight, in large part due to investigations already in existence or promised by members. of the US Congress. Executives would have thought that by leaving the president, the investigation of the bank’s transactions could take a back seat to other legislative agendas.
Another concern, these anonymous leaders say, is that if Trump is not in office, they will be in a better position to demand repayment. But it is above all a speculative hope for the bank, at least for now.
The financial giant has apparently considered various scenarios to get rid of its Trump-related baggage – including attempting to seize Trump’s assets – but many of these scenarios raise more questions than answers in the long run. If, for example, Trump is re-elected on Tuesday, the relationship could last a few more years, but the die has apparently been cast and the bank is looking for an exit as quickly as possible.
“The question is not why are they leaving now, but rather what took them so long?” federal criminal defense lawyer Tor Ekeland stated in an email to Law & Crime.
Famous Whistleblower Lawyer Marc Zaid also welcomed the news.
“Not good news for you or your family, Mr. Trump” he tweeted. “The debts are also coming due! “[image via NICHOLAS KAMM/AFP via Getty Images]
Editor’s Note: This article was edited after publication to include an additional citation.
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