- President Donald Trump was loaned more than a cumulative $US2 billion over several decades by Deutsche Bank, according to a new report from The New York Times published on Monday.
- The Times spoke to more than 20 people who who either currently or previously worked as executives for Deutsche Bank, giving a broader look at the scope of the relationship.
- The report highlighted the business relationship between Deutsche Bank and Trump, as investigations are being conducted by two committees in Congress and the New York attorney general.
- Here’s what we learned.
Deutsche Bank cumulatively loaned Donald Trump more than $US2 billion over two decades when he was in real estate, according to a new report from The New York Times.
While Trump’s relationship with Deutsche Bank – which dates back to the 1990s – is not entirely revelatory, The Times spoke to more than 20 people who who either currently or previously worked as executives for Deutsche Bank, giving a broader look at the scope of the relationship.
The bank was one of the few on Wall Street that would take a risk with Trump following his casino bankruptcies, The Times reported in 2016 ahead of that year’s presidential election. (“Several bankers on Wall Street say they are simply not willing to take on what they almost uniformly referred to as ‘Donald risk,'” The Times Susanne Craig reported.)
Deutsche Bank, however, was trying to make inroads into Wall Street by taking on clients that other banks would not work with, according to the Financial Times. Through their ongoing business, Trump owes Deutsche Bank around $US300 million, the Financial Time reported in 2017.
The New York Times’ Monday night report highlighted the business relationship between Deutsche Bank and Trump, as investigations are being conducted by two committees in Congress and the New York attorney general.
Here’s what we learned:
- Trump worked with the investment-banking division (including the commercial real-estate unit) and private-banking division.
- He continued to get loans from the bank as recently as 2015, when a $US170 million loan was underwritten for the transformation of the Old Post Office building in Washington, DC.
- Trump continued to be loaned money despite his relationship souring with investment-banking executives: He filed a lawsuit against the bank in 2008 before part of a loan he took out to build Trump International Hotel and Tower in Chicago was due, claiming the financial collapse that year was an act of God.
- One section of the investment-banking unit ended its relationship with Trump in 2004, after Trump Hotels & Casino Resorts defaulted on bonds.
- Trump’s son-in-law, Jared Kushner, introduced him to Rosemary Vrablic, a private banker with Deutsche Bank.
- Working with Vrablic, Trump secured funds to purchase Doral Golf Resort and Spa, and another $US48 million for Chicago’s Trump International Hotel and Tower.
- The $US48 million personal loan would be used to pay back the investment-banking loan. “Even by Wall Street standards, borrowing money from one part of a bank to pay off a loan from another division within the same bank was an extraordinary act of financial chutzpah,” The Times called the decision.
- Trump inflated his net worth on several occasions. He once said he was worth around $US3 billion, but the bank said it was more like $US788 million – yet Deutsche Bank continued to work with him.
Deutsche Bank is not without its own issues with US regulators unrelated to Trump, The Hill reports. In a statement to The Times, a spokeswoman said, “We remain committed to cooperating with authorised investigations.” Business Insider contacted the White House, Deutsche Bank, and the Trump Organisation for comment.
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