Why did US banks refuse to invest in Donald Trump?

US President Donald Trump absolutely does not want anyone to see his tax returns – not the public, not Congress.But there are people who have seen the excerpts. One group was able to catch a glimpse of the carefully guarded treasure and could give some insight – a team from Deutsche Bank. The bankers got a glimpse before granting a loan to the Trump Organization in 2012 – an access described by two people familiar with the interaction. All of this was part of a new beginning of a banking relationship that was strained after the financial crisis and led to a lawsuit over a project in Chicago. Following a recent so-called “subpoena,” a legally binding request, Deutsche Bank agreed to hand over details of the business relationship and the loans to the Trump family businesses to Congress on May 6. to start. Now, Trump and his family have filed a lawsuit to stop the flow of information. That follows an earlier lawsuit against Democrats and Trump’s outside audit firm to prevent similar responses to so-called subpoenas. Meanwhile, the Treasury Department has refused to provide Trump’s tax returns to the IRS – a situation that could trigger protracted court battles over the extent of congressional scrutiny. The president’s legal team, on the other hand, argues that Democrats are pursuing overly large requests solely for political reasons, and that these efforts violate his right to privacy. Deutsche Bank spokesman Troy Gravitt and Trump Organization officials declined to comment. The story of how a Deutsche Bank team reviewed Trump’s tax data begins with the president’s daughter, Ivanka Trump, according to sources. She served as the primary contact between the Trump Organization and Deutsche Bank in early talks before the 2012 loans for the Trump International Hotel and Tower in Chicago, which had spurred the litigation, and for the Trump National Doral Golf Club in Florida, say people familiar with the interactions. It provided the bank with an overview of the Trump Organization’s assets and its valuations for an initial request for more than 100 million dollars, the individuals say. When the bank refused, Ivanka offered to guarantee the loans with Trump’s personal wealth, it added. The bank was willing to do so, but had to carefully scrutinise Trump and his assets. To that end, Deutsche Bank sent a team to the office of the Trump Organization’s chief financial officer, Allen Weisselberg, two of the people briefed on the matter say. Weisselberg allowed bankers to view relevant parts of Trump’s tax returns and take notes, the people say. They were not allowed to make copies of the documents. Deutsche Bank had seen enough to justify the way forward and structured the subsequent financing as a recourse loan. This means that in the event of a default, the bank could fall back on Trump’s personal wealth. In total, Deutsche Bank lent more than 300 million dollars to Trump from 2012 to 2015, including 170 million dollars for the construction of a hotel on the site of the old Post Office building in Washington. This suggests that the president’s financial position has been rated as strong, regardless of his wealth. The loans didn’t attract attention until Trump won the 2016 presidential election, when Deutsche Bank found it in the unusual position of having financial leverage over the president of the United States. Even if the IRS does not submit the president’s tax returns, House Democrats could draw important information from bankers’ notes if their court challenge to Deutsche Bank is ultimately successful. Writer Tim O’Brien, who now writes for Bloomberg Opinion, saw Trump’s tax returns more than a decade ago. They were filed as part of a lawsuit filed by the real estate mogul over the publication of O’Brien’s book “Trump Nation.” The court instructed O’Brien not to publish them and the statements were subsequently kept by the court.

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