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Home / Business / Exclusive: Tired of Trump, Deutsche Bank wanted to go out but found no good option – source

Exclusive: Tired of Trump, Deutsche Bank wanted to go out but found no good option – source



NEW YORK / FRANKFURT (Reuters) – Deutsche Bank AG is looking to end its relationship with President Donald Trump after the US election, as it tires with the negative public opinion stemming from the relationship, according to three Senior bankers have direct knowledge of the issue.

FILE PHOTO: A statue is drawn next to the logo of Deutsche Bank of Germany in Frankfurt, Germany on September 30, 2016. REUTERS / Kai Pfaffenbach

Deutsche Bank has about $ 340 million in outstanding debt for the Trump Organization, the president̵

7;s sponsorship group currently overseen by his two sons, according to Trump’s filings submitted to the U.S. Government Ethics Office in July and a senior news source in the bank. The three loans are against Trump’s assets and will begin to mature in two years, are currently being paid off and guaranteed by the president personally, according to two bank officials.

During meetings in recent months, a Deutsche Bank management committee tasked with overseeing the credibility and other risks to lenders in the Americas has discussed ways it could be. Remove the bank from the last traces of the relationship, said two out of three bank officials. Over the years, the bank has lent Trump more than $ 2 billion, one of the officials said.

One idea was raised during the meetings: selling loans on the secondary market, two bank officials said. But one of the officials said the idea was not gaining traction, partly because it was unclear who would want to buy the loans and the flight attendant problems that came with it.

Although it is known that Deutsche Bank has closely examined its relationship with Trump, including by setting up a working group in 2016 to review the bank’s relationship with him, eagerness The bank’s lately wants to end all ties and the previously unreported election-related discussions.

Deutsche Bank declined to comment. The Trump Organization did not respond to a request for comment. The White House declined to comment.

WARREN WARNING

The Bank of Germany, which first started lending to Trump in the late 1990s, was dragged into the congressional investigation and other investigations into the real estate mogul’s finances and allegations of connection. with Russia.

Bad polls and press, regarded by a senior executive as “serious collateral damage” from the relationship, is an undesirable distraction for the bank, three officials to speak. It happened at a time when CEO Christian Sewing was trying to turn Deutsche Bank’s situation after decades of becoming a major Wall Street bank that caused the bank to suffer huge losses.

Elizabeth Warren, a Democrat on the Senate banking committee, had previously called for an investigation against Deutsche Bank of money laundering controls and asked for answers from lenders about the term. their relationship with Trump and his family. She told Reuters she intends to continue pushing for an investigation in the next administration.

“You bet I will continue to fight for our accountability and strong enforcement of banking laws, especially for giant institutions like Deutsche Bank,” she said.

What happens next for the bank depends on the results of Tuesday’s elections, according to three bank officials.

Three bank officials said, if the Republican president loses and the Democrats take control of the White House and Congress, Deutsche Bank’s senior executives believe parliament’s investigations were stalled amid courts vying for access to Trump’s financial records that can be recreated.

However, in this scenario, Deutsche Bank officials believe they will also have more freedom to settle loans and terminate their relationship with Trump, officials said. They hope doing so may ease some of the oversight, they say.

DIFFERENT SCENARIO

The loans, against Trump’s golf course in Miami, and hotels in Washington and Chicago, are to the point where the Trump Organization has only paid interest on them so far and the full principal remains unpaid, two in three. Bank officials said. They will be due in 2023 and 2024, records show.

Businesses that support loans have faced challenges. The economic slowdown caused by the coronavirus has affected the tourism industry, including the hotels. Moreover, last month Reuters reported that Trump’s plan to make money by developing housing and hotels on his golf courses, including his plan related to a Deutsche Bank loan, has so far not been successful. public.

Deutsche Bank executives are not too concerned about Trump’s ability to repay Trump loans, with the president’s personal guarantees and time left before they are due, three bank officials said.

If Trump was not in office, Deutsche Bank executives felt that it would be easier for them to demand repayments, seize assets if he couldn’t pay off or refinance, or attempt to sell the funds. loans, according to two out of three bank officials.

Since Trump personally secured all the loans, Deutsche Bank could also foreclose the president’s assets if he could not afford to repay the debt, two out of three bank officials said.

If Trump wins a second term, Deutsche Bank executives feel their options will be less, three bank officials said. The bank will not want the inherent negative public opinion with foreclosure of assets from an incumbent chairman and possibly extending loans until he leaves office, two bank officials said.

Bottom line, three bank officials said, the problem will not be resolved well until after the election.

Edited by Rachel Armstrong; Paritosh Bansal and Edward Tobin


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