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NEW: @DeutscheBank offered the Trump Org a break on payments on its loans tied to properties including the Doral golf resort.
The Trump Org *rejected* the bank's offer as insufficient. with @EricLiptonNYT @SteveEder et al. https://www.nytimes.com/2020/06/23/us/trump-doral-reopen-coronavirus.html
The Trump Org *rejected* the bank's offer as insufficient. with @EricLiptonNYT @SteveEder et al. https://www.nytimes.com/2020/06/23/us/trump-doral-reopen-coronavirus.html
Deutsche Bank offered @Trump basically the same modest break on loan payments that it offered to other struggling borrowers. One reason is that DB execs are extremely worried about attracting any more public attention to their longstanding relationship with @realDonaldTrump.
If they give a financial break to the president's company, will DB seem to be currying favor with an administration that regulates it and is criminally investigating it for money laundering?
Remember: If Trump defaults on his loans, DB can try to seize his personal assets.
Remember: If Trump defaults on his loans, DB can try to seize his personal assets.
Hanging over all of this is the Supreme Court's decision in @realDonaldTrump v. @DeutscheBank.
Depending on that ruling, the bank could instantly go from being Trump's loyal longstanding ally to being one of his most dangerous enemies.
A ruling is due any day now.
Depending on that ruling, the bank could instantly go from being Trump's loyal longstanding ally to being one of his most dangerous enemies.
A ruling is due any day now.
More detail on what @DeutscheBank was offering @Trump, which had sought relief on loan payments:
- Trump Org could skip at least a few monthly payments on at least some of its DB loans, including Doral
- It would eventually have to repay the loans in full
Trump Org said no.
- Trump Org could skip at least a few monthly payments on at least some of its DB loans, including Doral
- It would eventually have to repay the loans in full
Trump Org said no.
To appreciate the rich irony here, remember what happened in Nov. 2008.
DB refused to extend the imminent due date on a big loan for Trump's Chicago skyscraper.
Trump sued. He claimed the financial crisis was a contract-voiding act of God and that DB had caused the crisis. 1/2
DB refused to extend the imminent due date on a big loan for Trump's Chicago skyscraper.
Trump sued. He claimed the financial crisis was a contract-voiding act of God and that DB had caused the crisis. 1/2
The lawsuit was eventually settled, but DB stopped doing business with Trump for a few years because he had publicly burned them.
The relationship resumed in 2012. DB agreed to lend Trump nearly $200m for the Doral and to repay a portion of the defaulted Chicago loan.
The relationship resumed in 2012. DB agreed to lend Trump nearly $200m for the Doral and to repay a portion of the defaulted Chicago loan.
I'm reminded now of DB's response to Trump's 2008 lawsuit. The bank quoted from one of Trump's books in which he boasted about stiffing his lenders.
Here's the relevant passage in Dark Towers.
Here's the relevant passage in Dark Towers.
