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Deutsche Bank wants to end business relationship with Trump

D.According to insiders, Deutsche Bank is looking for a way to end its business relationship with American President Donald Trump. The bank is tired of making the headlines over and over again, said three high-ranking executives from Reuters news agency. In the past few months, a management committee that deals with reputational risks, among other things, has discussed various options, two insiders told Reuters. One proposal was to resell the loans granted to Trump in order to end business relationships with the real estate mogul. But this proposal did not catch on, among other things because it was unclear who would buy the loan, said an insider.

Deutsche Bank and the White House declined to comment. There was also no comment from Trump’s family company, the Trump Organization.

Deutsche Bank is one of Trump’s major lenders. The institute currently has around $ 340 million in loans to its family business Trump Organization, according to an insider. This order of magnitude is possible
also emerges from documents Trump filed with the Office of Government Ethics in July. There is no default in payment for the total of three loans due from 2023 and Trump has personally guaranteed their repayment, said
two insiders.

Billion business

The real estate mogul has been a Deutsche Bank customer for over two decades. Trump has received more than two billion dollars in loans since the late 1990s, said one of the insiders. The prominent customer got the money house many negative headlines. Time and again, the Democrats in the American Congress asked for information about the dealings with the Republican President, who rejected them with reference to the legal situation.

The Democratic Senator Elizabeth Warren, who has been targeting Deutsche Bank for many years for possible money laundering violations, does not give up and wants to continue campaigning for a committee of inquiry in Congress. “I will keep fighting. You can bet on it, ”Warren told Reuters. Banking laws need to be enforced, especially for giant institutions like Deutsche Bank.

How the Trump saga continues will depend largely on the outcome of the American elections. Should Trump lose and the Democrats control the White House and Congress, investigations into Trump’s finances should drive
record, tape. In such a situation, Deutsche Bank would also have more freedom to tackle the loan issue and end its business relationship with Trump, said the insiders. The bank hopes to get something out of the firing line of the investigation.

More leeway if Trump were no longer president

The loans, which were granted for Trump’s golf course in Miami and hotels in Washington and Chicago, are designed in such a way that the Trump Organization only has to pay interest, two insiders said. So the repayment of the loan takes place
completely at the end of the term. The loans will mature in 2023 and 2024, documents show. The hotels and golf clubs financed with the loan are suffering from the Corona crisis, the income is the same as in the entire tourism industry
broken into. Trump had also planned to build hotels and houses on golf courses like the one in Miami, and thus generate additional income. But so far nothing has come of it.

Deutsche Bank is not too worried about the remaining time to maturity of the loans and Trump’s personal guarantee, the three insiders said. But managers would have run through different scenarios. Should
Trump would no longer be president, from the perspective of Deutsche Bank it would be easier to insist on the repayment of the loans, to initiate foreclosure if Trump cannot repay or refinance the loans, or to grant them
sell, said two of the insiders. With Trump personally guaranteeing the loans, his assets could be seized if he cannot repay them. Should Trump be re-elected, the bank would have fewer options, said the three insiders. In that case, the loans would likely be extended until the end of Trump’s term in office. In any case, it seems unthinkable to seize the assets of an incumbent American president – the public outcry would be enormous.

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