Deutsche Bank Feared Trump Would Default On His Loans After Winning The Election
Following President Donald Trump’s election victory in 2016, Deutsche Bank officials reportedly considered extending the repayment terms of due to concerns he might default on his loans while in office.
Bloomberg News reported on Wednesday that bank officials feared the optics of going after a sitting president for monies owed, which included about $340 million the Trump Organization held in outstanding loans.
CNBC said the banking giant ultimately decided against the move, noting that the reasons for the decision were unclear, and alternatively chose to simply stop doing additional business with Trump.
The White House did not respond to CNBC’s request for comment, and Deutsche Bank decline a request. But Eric Trump, the president’s son who is running day-to-day operations at the Trump Organization with his brother, said the story is “complete nonsense.”
He told Bloomberg 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."
Bloomberg noted that Deutsche Bank had been Donald Trump’s lender of choice for decades, after many commercial banks cut ties with the real estate mogul due to his multiple bankruptcies.
In 2016, the German bank turned down the Trump Organization’s request for financing related to work on a Scottish golf course, which the New York Times reported was “in part because of concern that it might have to collect from a sitting president.”