Alas, after months of attempting to stall in an effort to keep the information a secret, Deutsche Bank has finally agreed to turn over to investigators records pertaining to its financial dealings with President Donald Trump.
According to a recent Vanity Fair article, the German bank was one of the only Wall Street occupants who would work with the controversial businessman. According to an excerpt from Thursday’s article:
‘As critics noted on the campaign trail, Trump’s habit of reneging on contracts and suing his lenders meant that virtually nobody on Wall Street wanted to work with him, with one exception: Deutsche Bank, which had loaned him hundreds of millions of dollars when no one else would, even after he sued the firm. Now, investigators probing the ties between the Trump campaign and Russia are wondering why—and they’re beginning to take a closer look at the president’s accounts with his favorite bank, which also happens to have strong ties to Russia itself.’
Deutsche Bank has loaned Trump over a billion dollars over the last two decades, according to the Vanity Fair report:
‘Over the last 20 years, Trump has received more than $4 billion in loan commitments and potential bond offerings from the German lender, despite suing the company in 2008 when he fell behind on payments on the $640 million loan he was given to build Trump International Hotel & Tower in Chicago. Incredibly, in order to avoid paying the $40 million he had personally guaranteed, Trump and his lawyer argued that “Deutsche Bank is one of the banks primarily responsible for the economic dysfunction we are currently facing”—i.e. the global financial crisis—and therefore it should pay him $3 billion in damages under the extraordinary event clause in his contract.’
Deutsche Bank has several ties to Russian officials, as Vanity Fair noted, similarly to the president himself. But the question remains: Why would the banking giant take on such a huge risk by loaning hundreds of millions of dollars to a man with such significant amounts of unpaid debt?
According to a recent report from the New York Times:
‘Banking regulators are reviewing hundreds of millions of dollars in loans made to Mr. Trump’s businesses through Deutsche Bank’s private wealth management unit, which caters to an ultrarich clientele, according to three people briefed on the review who were not authorized to speak publicly. The regulators want to know if the loans might expose the bank to heightened risks.’
To make matters even worse for Trump, the bank expects to have to turn over information regarding Trump’s financial dealings to Special Counsel Robert Mueller.
‘Separately, Deutsche Bank has been in contact with federal investigators about the Trump accounts, according to two people briefed on the matter. And the bank is expecting to eventually have to provide information to Robert S. Mueller III, the special counsel overseeing the federal investigation into the Trump campaign’s ties to Russia.’
The Guardian followed up with a similar report a day later:
‘Executives inside Deutsche Bank, Donald Trump’s personal bankers, are expecting that the bank will soon be receiving subpoenas or other requests for information from Robert Mueller, the special counsel who is investigating possible collusion between the Kremlin and the Trump campaign.’
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