Exclusive: Tired of Trump, Deutsche Bank wants out but sees no good options - sources
Source: Reuters
NEW YORK/FRANKFURT (Reuters) - Deutsche Bank AG DBKGn.DE is looking for ways to end its relationship with President Donald Trump after the U.S. elections, as it tires of the negative publicity stemming from the ties, according to three senior bank officials with direct knowledge of the matter.
Deutsche Bank has about $340 million in loans outstanding to the Trump Organization, the presidents umbrella group that is currently overseen by his two sons, according to filings made by Trump to the U.S. Office of Government Ethics in July and a senior source within the bank. The three loans, which are against Trump properties and start coming due in two years, are current on payments and personally guaranteed by the president, according to two bank officials.
In meetings in recent months, a Deutsche Bank management committee that oversees reputational and other risks for the lender in the Americas region has discussed ways in which it could rid the bank of these last vestiges of the relationship, two of the three bank officials said. The bank has over the years lent Trump more than $2 billion, one of the officials said.
One idea that has come up in the meetings: sell the loans in the secondary market, two of the bank officials said. But one of the officials said that idea has not gained traction, in part because it is not clear who would want to buy the loans and the attendant problems that come with it.
Read more: https://www.reuters.com/article/usa-election-deutsche-bank-exclusive/exclusive-tired-of-trump-deutsche-bank-wants-out-but-sees-no-good-options-sources-idUSKBN27J0H1
Autumn
(45,012 posts)Roy Rolling
(6,911 posts)Turn states evidence and blow the whistle on the Kennedy boy managing the account. Thatll clean the slate for them.
poli-junkie
(1,002 posts)Give us your Justin Kennedy; put him under oath to testify against Trump, his retired Supreme daddy, and daddy's replacement, Just-us Kavanaughty. Then we may cut a deal.
ancianita
(36,009 posts)mahatmakanejeeves
(57,359 posts)OriginalGeek
(12,132 posts)When Avaya bought them we switched to all VoIP phones but man I kinda miss that old hunk in the server room.
Rorey
(8,445 posts)I thought that financial institutions were lining up in droves to do OrangeAss the FAVOR of extending loans to him???
nykym
(3,063 posts)Call the loans in?
Mike 03
(16,616 posts)Or commence placing liens on Trump properties?
lastlib
(23,191 posts)And if, as seems to be his usual practice, the security turns out to have been overvalued, they're hosed.
Mike 03
(16,616 posts)I'm also interested in this story that a Russian bank underwrote these loans. I don't know anything about underwriting, but I'm wondering if the Russian bank is liable for this money if Trump defaults.
lastlib
(23,191 posts)and would be liable for the balance that they underwrote. If tRumpski defaults, Rusbank would have to cough up what they underwrote, minus the escrow amount, which they would forfeit to Deutsche.
So Vladdy-Daddy not gonna be happy to see a default.
louis-t
(23,284 posts)Marthe48
(16,926 posts)snicker.
He failed, failed again, failed some more. And the bank and economic world kept him afloat. Now he's sinking like a party balloon.
AZ8theist
(5,447 posts)His only bank wants to bail on him. Just when he's going to need MORE LOANS for legal expenses.
Damn shame, I tell you.......damn shame.
TexasBushwhacker
(20,159 posts)He will have to start paying on them in 2 years. If he defaults, THEN they can call the loans and begin liquidation if necessary. More likely, Trump will try to negotiate for a longer term, but it doesn't sound like they'll want to play ball this time. He may file for bankruptcy AGAIN, but if he's personally guaranteed the loans, that may not work.
A yuge part of Trump's net worth is his brand. That has become worth a bucket of warm spit. I thought this was interesting:
"But one of the officials said that idea has not gained traction, in part because it is not clear who would want to buy the loans and the attendant problems that come with it."
Who would want to buy the loans if he's no longer president? Not even the Russians or the Saudis. If he already owes them, and I think he does, he DOES NOT want to stiff them. He'll get Ivanka's head delivered to him in a bowling ball bag.
Hoyt
(54,770 posts)Mike 03
(16,616 posts)I'm just bringing this up because of an explosive story from January:
Trump Deutsche Bank Loans Underwritten By Russian State-Owned Bank, Whistleblower Told FBI
https://forensicnews.net/2020/01/03/trump-deutsche-bank-loans-underwritten-by-russian-state-owned-bank-whistleblower-told-fbi/
Just curious about the legal obligation of the Russian-backed bank (if this story is indeed true). I'd prefer they go after Trump.
RainCaster
(10,853 posts)They've got a real mess coming to them if that's the case. I sure hope that our government will not be liable for a Deutsche Bank failure.
Mike 03
(16,616 posts)One thing is clear: Trump's future looks bleak.
calimary
(81,179 posts)lastlib
(23,191 posts)Fullduplexxx
(7,851 posts)onetexan
(13,032 posts)They should not have done business w the Con given his history of defaulting on his loans or litigious tactics to avoid paying them.
smb
(3,471 posts)SergeStorms
(19,190 posts)Trump Resorts: Come for the relaxation and gold plated toilets, leave with an incredible bed-bug infestation.
hkp11
(275 posts)or chinese want to buy his loans...US secrets galore they can get from Drumpf. Really bad for the US though!
robbob
(3,523 posts)But Im sure they have enough dirt on him already.
hkp11
(275 posts)it's just the US security that's at stake - US intelligence, pentagon, DHS, etc. - Drumpf has learned things in the past 4 yrs about our nation's security
bluedigger
(17,086 posts)Any way you cut it, they are bad bankers.
catbyte
(34,358 posts)----------------------------------------------
I hope they end up taking a bath. WTH were they thinking?
Wellstone ruled
(34,661 posts)at a discount if they want to. USA Real Estate is still Prime Interest for Foreign Investment plus,all the Perks of Access,Influence,and Citizenship for the right person.
Deutsche no doubt receives their Loan Service Fees which most likely are quite large because of risk . Can not imagine anybody Trump with a Fico above 450.
BTW,Deutche created a separate Mortgage Bank within their Banking Business to the tune of 50 billion late last year. This Banks purpose is a repository for non preforming or what is known as "troubled" and "impaired"loans.
Mr.Bill
(24,262 posts)When you owe the bank $5,000 and can't make the payment, you have a problem.
When you owe the bank $5,000,000 and can't make a payment, the bank has a problem.
Wellstone ruled
(34,661 posts)The Sub Prime and Balloon Mortgage Real Estate world is a sea of Butt Ugly. Trump Crime Syndicate is just another Poster Child.
Deutsche and its subsidiary Ladder Capital(Sub Prime Lending Operations)are reported to massive Money Laundry operation for every Tin Pot Dictator in the world.
Mr.Bill
(24,262 posts)Joke of the century.
keithbvadu2
(36,722 posts)"and personally guaranteed by the president" -
That's a real confidence builder, eh?
--------------------------
We're selling this loan as an investment opportunity for you...
because we don't want it.
reACTIONary
(5,770 posts)... buy the loans for $1 per million. Then make him dance for his supper.
keithbvadu2
(36,722 posts)reACTIONary
(5,770 posts)... and I wasn't even trying.
dchill
(38,462 posts)Lonestarblue
(9,958 posts)Or Mar-a-Lago or any other Trump property since he personally guaranteed the loans? Had the business obtained the loans he would declare bankruptcy to avoid paying, but Im not sure what assets are on the line in a personal bankruptcy. I do hope they go after the money and ensure that he has to give up his lavish lifestyle, especially when taxpayers are no longer footing the bill.
dchill
(38,462 posts)No value.
usaf-vet
(6,178 posts)..... spend what $50-$100 dollars of tax payer money to buy him an indoor putting game for his new home in federal prison. Hell, he can spend EVERY DAY playing golf.
BlueWavePsych
(2,635 posts)Lock him up.
(6,925 posts)KY_EnviroGuy
(14,489 posts)I can't even imagine the putting out of my trash cans each week being managed by those two.
dchill
(38,462 posts)Just asking...
BlueWavePsych
(2,635 posts)sandensea
(21,614 posts)This makes them unable to pay their own debts (usually quite large) - and worst of all, a possible run on said bank by deposits may ensue once news gets out.
This is how S&Ls failed: massive loans were given out to friends of the board (sometimes to board members themselves - e.g. Neil Bush) on a buddy-buddy basis.
Except the buddy never repaid - indeed, never intended to (and the board usually knew it).
Knowing they could never pay depositors, many simply shut their doors in advance. The taxpayer bailed out depositors (up to a point) during G.H.W. Bush's entire 4-year term (at a now-quaint $150 billion cost).
Now, in this case Deutsche Bank is a behemoth that is extremely unlikely to suffer any solvency issues due to Deadbeat Donald.
But a Donnie default will surely trigger a wave of bad headlines and ECB investigations, which they'd rather avoid (bad for ze stock price, ja?).
But of course, should they be investigated, they already know what to say:
DENVERPOPS
(8,802 posts)Don't get me even started on all the flagrant CRIMINAL shit Michael Wise pulled off here in Denverland......
AND he got away with all of it because of Neil Bush being on the board of directors and the Federal Judge was brought in from Texas.....
When people say that "Trump is unprecedented" - I beg to differ.
They were just more polite about it, more mindful of etiquette.
DENVERPOPS
(8,802 posts)don't get me started on the old man, HW.
H.W., the only common thread from JFK to the end of "W"'s term.........Think about it for a minute......
Co-incidence? Makes me wonder.........(and no I am not a conspiracy nut!)
mahatmakanejeeves
(57,359 posts)ResistantAmerican17
(3,797 posts)even banks.....what a maroon.
oldsoftie
(12,514 posts)Thats how they get out.
Traildogbob
(8,703 posts)ALL his properties and change locks? Leave the whole damn criminal KKKlan homeless. Let em move in with Hannity and LimpBalls.
fierywoman
(7,679 posts)Traildogbob
(8,703 posts)😂🤣😁😂🤪😄✌🏼✌🏼
fierywoman
(7,679 posts)Major Nikon
(36,827 posts)ffr
(22,665 posts)FUCK YOU Deutsche Bank. Cough up your criminal enterprise, your merry band of international criminals and thugs.
Steelrolled
(2,022 posts)If Trump wins, it won't be mentioned again.
Evolve Dammit
(16,719 posts)yuiyoshida
(41,829 posts)catch fire and burn down..
flibbitygiblets
(7,220 posts)Sucks to be you, Douche-bank. Shouldn't have propped up that con man. Now hand over his records to investigators and seize what little value you can get out of his properties before someone else gets them and/or he torches them for the (overinflated) insurance money!
DFW
(54,325 posts)And I'll bet $340 million is the tip of the iceberg. A bank gets to list loans as assets as long as they are considered "performing," or solid loans where the party that got the loan is credible and is paying the interest on time, and will ultimately be good for repayment. No bank (or bank officer) wants to admit that a loan they made was done so in error, and could result in a default, especially of that magnitude. It looks bad on a loan officer's record, and it looks bad to a bank's shareholders. No one wants to tossed out in the street for having okayed a loan of that size that will have to be written off.
If they have to do that, Deutsche Bank's stock will suffer, heads will roll, and Trump's family will have trouble ever getting credit again.
Gee, wouldn't THAT be a shame?
cstanleytech
(26,273 posts)3Hotdogs
(12,358 posts)but I'd buy the loans or $3,400.00.
Tell 'em to give me a call.
H.
OriginalGeek
(12,132 posts)tree-fiddy.
Steelrolled
(2,022 posts)to pay them off earlier, and take out new loans, given today's interest rates.