In the week leading up to his departure from the Presidency, Donald Trump is facing what amounts to a financial crisis.
According to the New York Times, in the aftermath of last week’s mob violence that he encouraged, Trump is losing a grasp on not only the banks that supported him, but his resorts and properties and other ventures tied to the Trump Organization:
“In the span of four days, President Trump’s family business has lost its online store, the buzz from Mr. Trump’s promotional tweets about its luxury resorts and bragging rights as host to one of the world’s most prestigious golf tournaments. The mob attack on Congress last week by Mr. Trump’s supporters has spurred a reckoning for the Trump Organization by businesses and institutions, at a scale far greater than his previous polarizing actions.”
The report continues by explaining that Trump may not ever fully recover from the fallout of the end of Presidency and its affect on his private-sector business life.
“And the Trump brand, premised on gold-plated luxury and a super-affluent clientele, may not fully recover from the fallout of his supporters violently storming and vandalizing the U.S. Capitol, hospitality analysts say and some people close to the business acknowledge. Other companies linked with the Trumps, including Deutsche Bank, the president’s largest lender, and Signature Bank, are also seeking distance from him and his business.”
Trump’s relationships with banks is perhaps his most tenuous at the moment. Deutsche Bank, which his primary lender for two decades, has decided not to do business with him in the future, according to a person familiar with the situation.
Trump currently owes Deutsche Bank more than $300 million.
“The bank has concluded that, short of forgiving the debt, it has no way to extricate itself from the Trump relationship before the loans come due.”
Signature Bank, another longtime partner of Trumps’ business, also announced plans to cut ties. The bank helped Trump finance his Florida golf course where Ivanka Trump was once a board member.
Signature Bank issued a statement calling on Trump to resign, saying it would be “in the best interests of our nation and the American people.”
A spokeswoman for the bank added they had decided that it “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
She also said that in the wake of the capitol violence the bank began closing Trump’s personal accounts, which had over $5 million in them.
Trump also got bad news from the sporting world when the PGA announced it was pulling the 2022 PGA Championship from Trump’s National Golf Course. According to some close to the situation, this move angered Trump more than the prospect of a second impeachment by Congress.
Deutsche Bank reportedly decided months ago that after the elections it would move to cut all ties to Donald Trump. Insiders state the company is tired of the negative publicity it has received due to its connections to Trump.
Right now, Deutsche Bank holds about $340 million in outstanding loans to Donald Trump and the Trump Organization. While he is in the Oval Office all business of the Trump Organization is being overseen by Trump’s oldest sons Don Jr and Eric. Trump owes the bank three loans and all of them come due within the next two years.
A Deutsche Bank management committee that oversees reputational and other risks for the lender in the Americas region met several times recently to discuss Trump’s loans and the three officials stated that over the years the institution lent Trump more than $2 billion.
Bank officials have discussed selling the loans in the secondary market, but so far the idea has not gained any traction. Bank officials question who would want to purchase the loans and the issues that come with them.
Deutsche Bank has been closely reevaluating its relationship with Trump. In 2016 it set up a working group to review the bank’s dealings with him. Bank officials are now considering seizing Trump’s assets if he does not pay off the loans on time.
The banking institution began loaning money to Trump in the late 1990s. It has been dragged into congressional and other investigations due to its connections to Trump.
Deutsche is now said to be at its wits end with the probes and constant bad press. Chief Executive Christian Sewing is ready to turn Deutsche Bank around.