Donald Trump was President of the United States for eight days. More and more former political allies are turning away from him – banks and business customers also avoid Trump companies. There is now a signal from his home bank – Deutsche Bank – that it does not want to extend a loan of more than $ 300 million.
Deutsche Bank does not want to extend loans
According to the “New York Times”
; and from Bloomberg Financial Services, Deutsche Bank does not want to do any new business with Trump and his company. A spokesman for Deutsche Bank in Frankfurt declined to comment on the matter. Basically, banks do not comment publicly on individual customer relationships. The head of the American branch, Christiana Riley, was surprised against Donald Trump on “Linkedin” the day after the storm in the Capitol.
“Yesterday was a black day for America and democracy. (…) We are proud of our constitution and stand on the side of those who strive to uphold it to ensure that the will of the people is protected and that a peaceful exchange of power takes place. “”
The business relationship between the bank and Trump has been volatile for decades and has long been viewed as tense. Deutsche Bank was Trump’s temporary home bank and gave him a large loan to finance real estate before his president. In total, there are still around USD 340 million in loans that will be repaid over the next few years.
The fact that the partnership lasted so long is remarkable given the many difficulties and conflicts in the past. The company has really fallen in love with real estate over the past decade. There was a multi-million dollar loan dispute at the time – instead of repaying it, Trump sued Deutsche Bank for allegedly contributing to the 2008 financial crisis, which in turn meant he was in financial trouble.
Even so, the institution continued to lend him money afterwards. Influential New York banker Rosemary Vrablic is considered an important figure here. He left Deutsche Bank at the end of last year.
When US media reported in mid-2019 that he was generally in a difficult position at the bank, Trump dismissed this as wrong and even referred to his relationship with Deutsche Bank: “Like many others, you want to do business with me!” . One thing is certain: Trump will develop into a tough mortgage for financial institutions at the latest with the president.
The business relationship with Deutsche Bank, which has made a name for itself in the United States in recent years through scandals and violations of regulations, prompted the opposition Democratic Party quickly. Senior officials have repeatedly tried to review Trump’s relationship with Deutsche Bank. The Russian black money dispute, in which Deutsche Bank was involved, raises suspicion of collusion between Trump and the Russian election campaigners.
In addition, there was fierce legal controversy over the publication of Trump’s tax documents in which Deutsche Bank, as the business partner of the US President, was repeatedly the headline. Overall, legal efforts and fees may long have outweighed the benefits of doing business from a business perspective.
After Trump supporters stormed the seat of the US Congress last Wednesday, the crowd may finally be full.
The golf association also turned away from Trump
Other business partners also turned away from the outgoing US president. The Association of Professional Golfers will no longer host famous golf tournaments on Trump Golf Course, as announced by the Association.
Donald Trump’s Bedminster Resort will remain an orphan in May. The competition will bring in hundreds of golfers – and income will be accepted too. Trump’s Gulf government is suffering badly from the corona outbreak. 17 of the 18 golf courses had to be closed. Some resorts suffer losses.
The SRF stock exchange reporter Jens Korte assessed the situation
SRF: The big golf tournament in May had to be canceled. How difficult is it for the Trump businessman and his 17 golf resorts?
Jens Korte: That was a blow to the Trump organization. This golf course covers a third of the company’s sales. But this is also about Trump’s image and marketing. He is considering legal action against the tournament organization.
Deutsche Bank is considering not extending its lending into the three-digit range. Why does he do this?
Controversies have raged for months. Deutsche Bank would rather leave the partnership sooner than later. Deutsche Bank has more than $ 300 million in loans to Trump that will mature in two or three years. This contract is currently being executed. But Deutsche Bank recently publicly announced that it does not want to make a new deal with Donald Trump. This means that Trump needs a new investor to trigger this debt, or that Deutsche Bank could mortgage a number of properties from the Trump organization.
How painful is Deutsche Bank’s withdrawal for businessman and millionaire Donald Trump?
Trump is in a good position as a private individual, but it is a heavy blow to him as a businessman. Even if it is said from a personal circle that you still have enough allies. But especially in two to three years, when those loans are due, things could get tighter for the Trump organization.