More of Trump’s Banks Cut Ties as Backlash Grows Over Violence
(Bloomberg) - Donald Trump's tumultuous relationship with the financial industry is under renewed pressure after his top creditor, hometown bank, and even his mortgage lender spurned him after the U.S. Capitol riots.
The question is whether its other banks and financiers - including giants Capital One Financial Corp. and JPMorgan Chase & Co. - plan to keep him as a customer.
Late Monday, new strains surfaced in Trump's relationship with the industry. Deutsche Bank AG has decided not to do any more business with Trump or his family business while waiting for him to repay roughly $ 300 million in loans over the coming years, said a person aware of the situation. Manhattan-based Signature Bank, just a 10-minute walk down Fifth Avenue from Trump Tower, announced that it is closing Trump accounts worth around $ 5.3 million.
On Tuesday, Professional Bank, which once gave him a $ 11 million mortgage, said it would stop doing business with the Trump organization and "wind down the relationship with immediate effect."
Eric Trump, one of the sons of the president who runs the family business while his father is in the White House, didn't respond to a request for comment.
As New York City joins a onslaught of companies and corporations looking to pull out of business with Trump after he encouraged a crowd of supporters to storm the Capitol, here are the companies that have lent him or his Hold Money, and What You Said About These Ties:
The company, known for its credit cards, holds up to $ 75 million of Trump's money in four checking and savings accounts, largely because of his revocable trust. This can be found on the President's Financial Disclosure Form dated July 31st. Capital One paid Trump and his trust interest of up to $ 2 million the previous year. Until recently, the bank had a branch next to a Trump building on Park Avenue and 59th Street in Manhattan. Some Twitter users have announced that they will close their accounts with the bank if they do not take action against Trump. "For political reasons, we are not discussing current or past customer relationships," said the bank in a statement from a spokesman.
The largest US bank holds up to $ 6 million in three accounts for the president, mostly in a savings account his father Fred set up for Trump's benefit. JPMorgan paid Trump up to $ 17,500 in interest for the year. "We will decline to comment," said bank spokeswoman Amy Bonitatibus.
The Florida-based bank holds up to $ 25.25 million in two money market accounts for Trump. The vast majority of these are in an account with the Donald J. Trump Revocable Trust. The bank paid Trump $ 102,500 in interest through 2019. Trump's trade secretary Wilbur Ross was once part of a group of investors that BankUnited bought after the financial crisis. It later became a public company. The bank's representatives did not respond to a message asking for comment.
First Republic Bank
Trump had up to $ 50,000 in a checking account with the California-based lender as of July 31. "There was a single account that was inactive and closed," First Republic said in a statement by outside spokesman Greg Berardi. He declined to indicate the timing or otherwise elaborate on it.
Head of Capital
The non-bank commercial real estate lender loaned Trump $ 282 million for four properties in Manhattan from 2012 to 2016. This is evident from the city's records and Trump's personal financial disclosure. The loans, backed by real estate including its towers at 40 Wall Street and Fifth Avenue, were bundled into securities and sold to investors. Jack Weisselberg, a lending manager at Ladder, declined to comment and there was no response to messages sent to other executives. He is the son of Allen Weisselberg, the Trump Organization's longtime CFO who previously worked for Fred Trump.
Trump loaned $ 125 million from Deutsche Bank for Trump National Doral Miami Resort in 2012. This is evident from the county records and Trump's personal financial disclosure. The floating rate debt, which is tied to either the Libor or the Prime Rate, is due in 2023. He also borrowed $ 170 million for the Trump International Hotel in Washington in 2015 and received another loan from the German lender against his hotel / apartment tower in Chicago in 2012. Both floating rate loans mature in 2024. A spokesman for Deutsche Bank declined to comment.
Most of the $ 5.3 million Trump had in checking and money market accounts at Signature was held for Trump's revocable trust, according to Trump's personal financial disclosure. The bank paid him $ 105,000 in interest the previous year. His daughter Ivanka was once a member of Signature's board of directors. "We believe the appropriate action would be for the President of the United States to step down, which is in the best interests of our nation and the American people," the bank said in a statement.
The Florida-based bank held up to $ 25 million in a money market account for Trump's revocable trust and paid up to $ 1 million in interest for the year, according to the July filing. The bank recently entered into a relationship with Trump: in 2018, it provided a mortgage on Trump's $ 18 million purchase of his sister's Palm Beach home across from his Mar-a-Lago club. The $ 11 million loan bears 4.5% interest and has a term until 2048, according to County Records and Trump's personal financial disclosure.
Eric Trump has described the Trump Organization as a profitable company that can work with anyone it wants.
"We are one of the least indebted real estate companies in the country," he told Bloomberg in 2019. “Virtually all of our assets are freely and clearly owned, and the few who have mortgages are a small fraction of the asset's value. "
Despite Donald Trump's past conflicts with the financial industry - he's defaulted, his companies have filed for bankruptcy, and he has a penchant for suing people and organizations that refuse to bow to his will - there has been no shortage of companies that do were willing to give him capital or keep his money.
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