Deutsche Bank reportedly became the latest company to sever ties with the president Donald trump, ending a delicate two-decade relationship in which she came under scrutiny as a lender to the Trump Organization.
The bank declined to comment when contacted by News week Tuesday about reports that he is no longer doing business with Trump or his company, as the fallout from the riots on Capitol Hill last week that the president is accused of stoking continues. News week also contacted the Trump Organization for comment.
The decision, which sources close to the bank’s thought revealed to The New York Times and CNN, follows the news that Signature Bank, the New York lender who served Trump’s family, would also close two personal accounts in which Trump held approximately $ 5.3 million.
A number of other companies, including Comcast, Shopify and Hallmark, have also distanced themselves from Trump.
The turbulent relationship between the German bank and Trump dates back to 1998 when it loaned the future president around $ 425 million to finance the renovation of a tower block at 40 Wall Street and the construction of a skyscraper next to the The United Nations.
In 2003, Deutsche Bank helped Trump’s casino company sell hundreds of millions of dollars in bonds, but Trump’s company defaulted in 2004, leaving the bank’s customers with losses. Trump also sued the bank’s real estate division in 2008 after defaulting on a $ 40 million repayment that funded construction of the Trump International Hotel and Tower in Chicago.
But the bank backed him up and loaned him more money to pay off the existing debt. Deutsche Bank’s total loans to Trump and his companies since the 1990s are over $ 2.5 billion, though the president has repaid most of that.
The German bank now has around $ 340 million in loans outstanding to the Trump organization, according to a Reuters report in November citing bank officials and documents filed with the United States Office of Government Ethics.
There are currently three Deutsche Bank loans against Trump properties, which are due in 2023 and 2024.
These are interest-only loans against Trump’s golf course in Miami, and hotels in Washington and Chicago on which the Trump Organization has so far been located.
Bank executives believe Trump can repay the loans, given his personal guarantees and the time remaining before they mature. The fact that he is not in office would facilitate the request for repayment, foreclosure or refinancing.
However, Deutsche Bank officials have expressed concern about the constant negative coverage of his ties to Trump and how he has been drawn into congressional and other inquiries into Trump’s finances.
The bank had considered restructuring its loans after his election but decided not to do new business with him during his presidency, Bloomberg reported.
Bank executives feared congressional investigations stalled amid a legal battle over access to Trump’s financial records would resume if Trump loses the election.
The bank has been subpoenaed over its relationship with the Trump Organization. Manhattan District Attorney’s Office and New York Attorney General are investigating whether the Trump organization mislead or defraud the lender by inflating the value of some of its assets.
Bank executives had discussed in the months leading up to the election how to sever relations with Trump, Reuters reported. At the end of December, two private bankers who worked closely with Trump resigned.
The violence in Washington, DC last week, which Trump is accused of instigating, appeared to be the last straw. Christiana Riley, Deutsche Bank’s top executive in the Americas, condemned the violence on Capitol Hill last week, saying in a LinkedIn post that “the scenes we have witnessed are a disgrace to the whole nation.”