Eric Trump: How Dare Anyone Suggest My Family Would Default On A Bank Loan!
The notion that Deutsche Bank would even consider the Trump Organization might default on its loans invited an indignant response from presidential son Eric Trump this week.
Trump, who is running day-to-day operations of the company with his brother, Donald Trump, Jr., while their father occupies the White House, issued a statement to Bloomberg News saying the story was “complete nonsense.”
“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.”
The “nonsense” story that provoked Trump’s response was a Bloomberg report claiming that Deutsche Bank feared the Trump Organization might default on its $340 million in loans after Donald Trump won the 2016 election — potentially putting the bank in the position of going after the assets of a sitting president.
Rather than risk such a public relations nightmare, Deutsche Bank officials discussed extending the loan repayment until after a potential second term in office, pushing it out to 2025.
Ultimately the plan was abandoned, and the bank decided instead it would not do any new business with the president.
Deutsche Bank has been President Trump’s go-to lender for decades, Bloomberg noted, as other commercial banks refused to do business with him after multiple bankruptcies.
His outstanding loans with the bank include $125 million for the Trump National Doral Miami resort, $170 million for the Trump International Hotel in Washington, and another loan against a tower in Chicago, Bloomberg reported.