Trump Organization Requests Reduction or Delay in Deutsche Bank Loan Payments
The Trump Organization has been in contact with several of its largest creditors to discuss whether the company can reduce or delay upcoming loan payments as it weathers the economic downturn caused by the COVID-19 coronavirus outbreak, the New York Times reported Thursday.
According to the report, representatives from the president’s private business have recently spoken with officials from Deutsche Bank and Palm Beach County about the possibility of postponing or reducing upcoming payments on loans and leases.
Representatives of the president contacted the private-banking division of Deutsche Bank – by far Trump’s largest creditor – to try and negotiate a postponed timetable for repaying hundreds of millions of dollars in outstanding loans, a person briefed on the talks told the Times. At the same time, others in the Trump Organization had contacted Palm Beach County officials seeking to renegotiate monthly rent payments on land leased from the municipality.
Ever since Mr. Trump’s election, Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials. Seizing the president’s personal assets would be an unattractive proposition.
But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank.
https://lawandcrime.com/high-profile/trump-org-request-to-reduce-or-delay-loan-payments-has-deutsche-bank-execs-fearing-retaliation/
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