Top

Commodity Masters

  /  News   /  How Donald Trump got his Deutsche Bank loans

How Donald Trump got his Deutsche Bank loans

S&P Futures

3,694.75

+24.75(+0.67%)

 

Dow Futures

29,526.00

+183.00(+0.62%)

 

Nasdaq Futures

11,401.25

+85.00(+0.75%)

 

Russell 2000 Futures

1,678.40

+15.90(+0.96%)

 

Crude Oil

77.21

+0.50(+0.65%)

 

Gold

1,638.70

+5.30(+0.32%)

 

Silver

18.49

+0.01(+0.05%)

 

EUR/USD

0.9642

+0.0031(+0.32%)

 

10-Yr Bond

3.8780

+0.1810(+4.90%)

 

Vix

32.26

+2.34(+7.82%)

 

GBP/USD

1.0783

+0.0099(+0.93%)

 

USD/JPY

144.3860

-0.2940(-0.20%)

 

BTC-USD

20,045.60

+1,173.05(+6.22%)

 

CMC Crypto 200

458.78

+25.68(+5.93%)

 

FTSE 100

7,020.95

+2.35(+0.03%)

 

Nikkei 225

26,590.45

+158.90(+0.60%)

 

Deutsche Bank has emerged as the star witness in New York attorney general Letitia James’ case against Donald Trump and the Trump Organization.

In a suit filed last week, James accused Trump and his organization of defrauding the German investment bank and others by exaggerating the value of his properties. Deutsche Bank, which extended Trump hundreds of millions of dollars in loans for hotel and resort development projects in the past decade, is cooperating with her office’s investigation, James said at a press conference.

Read more

Read This: Alan Rickman’s diaries reveal his less-than-flattering opinions about <em>Harry Potter</em>

<em>Last Of Us </em>TV Show Gets Its First Full Trailer

‘The Most Ticketed Car Show in America’ Came to My Town and Two People Are Dead

UK Royals Force News Sites to Delete Embarrassing Video Clips

Hasbro’s Selfie Series Action Figures Will Be Available In the U.S. Starting Friday

The New York attorney general’s (NYAG) complaint describes an environment in which Trump was able to pass off faulty financial records as true, duping financial and government institutions in the process. Trump attorney Alina Habba called the lawsuit meritless, saying the NYAG was “neither focused on the facts nor the law.”

How Trump’s relationship with Deutsche Bank evolved

The Trump Organization had done business with Deutsche Bank since the 1990s, but the pivot point in their shared history came in 2011 when the company switched from the commercial real estate division of the bank to the private wealth management division, according to the complaint.

In September 2011, Jared Kushner introduced his brother-in-law Donald Trump Jr. to Rosemary Vrablic, a managing director and senior banker at Deutsche Bank. Over the next decade, Vrablic would become known as Trump’s “personal banker.” (Vrablic resigned in December 2020 along with fellow Deutsche Bank banker Dominic Scalzi after violating internal bank rules by personally investing in an apartment partially owned by Kushner, a client. Vrablic and Scalzi are currently barred by the Financial Industry Regulatory Authority, or Finra, from acting as brokers. Scalzi is not named in the complaint.)

The Trump Organization sought a loan for its golf course in Doral, Florida. The commercial real estate division called it “a tough asset and our initial reaction was not enthusiastic,” the complaint says.

But after shopping the loan around to other banks, Vrablic offered the best loan: her division’s deal came with a 2% interest rate vs. the commercial real estate division’s offer of 8%. “It doesn’t get better than this,” Ivanka Trump said. The tradeoff was that Trump would personally have to guarantee the full amount of the loan—$125 million—and maintain a net worth of $2.5 billion and $50 million in unencumbered liquidity.

When he saw the terms of the loan agreement, Trump Organization finance chief Jason Greenblatt was taken aback, according to the complaint. “Is DJT willing to do that?” he asked Ivanka. “Also, the net worth covenants and DJT indebtedness limitations would seem to be a problem?”

Greenblatt added that the personal guarantee was a “highly risky proposition” and conflicted with what Trump had told him in the past, the complaint states. “Obviously this is not my decision, but this is completely inconsistent with what he told me he would ever do again.”

Who did Trump defraud?

Trump was able to obtain the Doral loan, like numerous others outlined in the complaint, in part due to his statements of financial condition, personal balance sheets that James alleges contained fraudulent misrepresentations of his wealth, property values, and assets. Among the allegations she cites: Trump allegedly lied about the size of his Manhattan apartment, over-counted expected golf club membership, and violated the terms of a conservation easement to inflate his estimated worth and secure favorable loans.

In the complaint, Deutsche Bank is cast as one of the primary victims of Trump’s alleged fraud. In a statement to Quartz, bank spokesperson Dylan Riddle said:

“We cannot comment on the details of current or former client accounts, nor the substance of legal claims based on certain facts that the NYAG, itself, has alleged were unknown or unavailable to Deutsche Bank at the time. The Bank takes its legal obligations seriously, including appropriately responding to authorized investigations and proceedings.”

The NYAG informed Deutsche Bank of the falsified financial documents in 2020 as part of an investigative subpoena. Afterward, Deutsche Bank asked the Trump Organization questions about the financial documents. The company “refused to respond” so Deutsche Bank decided to “exit its relationship” with the company, the complaint says.

At least one of the Deutsche Bank loans—a $125 million credit for the Doral property—was refinanced by Axos Bank, a San Diego-based lender, in May 2022. Since the Trump Organization paid $295 million of what it owes to Deutsche, the German bank now only holds $45 million in Trump associated debt, according to the NYAG’s filing. NYAG estimates that Trump saved between $85 million and $150 million in interest rate savings because of the misleading statements.

Banks weren’t the only institutions defrauded. Deutsche Bank loaned the Trump Organization $170 million to buy and renovate the Old Post Office building in Washington DC, a bid that Trump won for his Trump International Hotel.

Trump’s financial documents were used in the bidding process with the US General Services Administration (GSA), a process that the Trump Organization bragged was “one of the most competitive selection processes in the history of” the GSA.

Advertisement

The Hill

Manchin surprised by McConnell opposition: ‘You can be a hero one day and a villain the next’

Sen. Joe Manchin (D-W.Va.) admitted Monday that he was caught by surprise when Senate Minority Leader Mitch McConnell (R-Ky.) and other Senate Republicans decided to oppose his permitting reform bill, which means it will likely fail on the Senate floor this week. Manchin said he expected Sen. Bernie Sanders (I-Vt.), an outspoken progressive, and…

The Conversation

A seismic change has taken place at the Supreme Court – but it’s not clear if the shift is about principle or party

The U.S. Supreme Court Building is shown in September 2022. Sarah Silbiger for The Washington Post via Getty ImagesIn the summer of 2022, the U.S. witnessed a dramatic change in how the majority of Supreme Court justices understand the Constitution. At the end of a single term, the court rejected the long-standing constitutional right to abortion, expanded gun rights and ruled that religion can have a bigger role in public institutions. These outcomes reflect a seismic shift in U.S. law and poli

Reuters

Republican Toomey blasts Biden’s ‘irresponsible’ use of Cold War-era defense law

Republican Senator Pat Toomey on Monday blasted President Joe Biden for what he called the increasing and “irresponsible” use of a Cold War-era defense law to boost production of baby food, solar panel components and other non-defense items. Toomey, the top Republican on the Senate Banking Committee, told Biden that using the Defense Production Act in this way disrupted supply chains and violated the intent of the law to make goods available in actual national security emergencies. “If your administration continues to abuse the DPA and skirt legitimate questions surrounding its use, Congress may have to curtail the executive branch’s ability to so easily invoke it,” Toomey wrote in a letter obtained by Reuters.

The Root

Florida Sheriff Found Responsible for Deadly Traffic Accident Killing Black Teen. Now He Has to Pay $15M

A Florida sheriff has been ordered by a jury to pay $15 million to the parents of Andrew Joseph III, a teen who died while crossing a highway after deputies kicked him out of a state fair, according to The Associated Press. Joseph’s family attorney said Andrew should’ve never been put in such a “vulnerable situation.”

MarketWatch

Assembly speaker in Wisconsin sues to block Jan. 6 select committee’s subpoena for testimony on Trump interaction

Wisconsin’s Republican Assembly leader is suing to block a subpoena that orders him to testify before the House committee investigating the Jan. 6 insurrection about a conversation he had with Donald Trump about overturning the 2020 election. Assembly Speaker Robin Vos filed the lawsuit on Sunday in federal court in Wisconsin arguing that the subpoena falls outside the scope of the committee’s investigation into last year’s Capitol attack and infringes on his legislative immunity from civil process.

The Recount

Sen. Kyrsten Sinema (D-AZ): “But despite our apparent differences, Senator McConnell and I have forged a friendship.”

While speaking at an event held by the McConnell Center, Senator Kyrsten Sinema, a Democrat from Arizona, spoke about her unlikely friendship with Senator Minority Leader Mitch McConnell, a Republican from Kentucky. Although Senator Cinema is a registered Democrat, she is one of the few Democrats who is not always aligned with the Democratic party. One that is rooted in our commonalities, including are pragmatic approach to legislating, our respect for the Senate as an institution, our love for our home states, and a dogged determination on behalf of our constituents.

Reuters

Russia’s partial mobilization prompts online insults from Ukraine

KYIV (Reuters) -The Ukrainian Defence Ministry on Sunday ridiculed Moscow’s partial mobilization to bolster its forces in Ukraine, posting on Twitter a mash-up of social media videos of Russian police beating and arresting men protesting the call-up. The mockery came as Russia’s two top lawmakers expressed concern about the drive, ordering regional officials to resolve “excesses” that have ignited public anger, triggered demonstrations and prompted military-age men to make for border crossings. “Russia still has remnants of a professional army” that the Ukrainian army “hasn’t yet destroyed,” the Ukrainian defence ministry said in an English-language tweet, referring to this month’s rout of Russian forces from much of the northeastern Kharkiv region.

Yahoo Entertainment

Camila Cabello brings up former crush on Harry Styles in order to win over ‘Voice’ contestant

As a first time coach on The Voice, Camila Cabello’s biggest card to play has been the fact that she has been on a singing competition before. And while it has now become a running joke among the other coaches, on Monday, it may have given her the edge over fellow coach John Legend, when the two went head-to-head over 18-year-old pop/rock singer Sasha Hurtado. After Sasha belted Bishop Briggs’s “River” Monday and inspired both Camila and her rival coach John Legend to turn their red chairs, John asked Sasha about her favorite current artists. When Sasha mentioned Harry Styles, John brought up the fun fact that he was the first person that Harry ever followed on Twitter, which was pretty impressive. “Ooh, that’s a flex!” Sasha exclaimed. But then Camila brought up an even more fun fact: “I actually auditioned for my original singing competition show because I thought that I would meet Harry Styles and we would fall in love,” said Camila. While Camila did meet Harry, but never ended up falling in love with him, she still ended up becoming one of the biggest pop solo stars to emerge from the X Factor franchise, which was enough for Sasha to choose Team Camila. “Sasha, what a win,” said Camila. “I love her raw, kind of, gritty spirit that she came out with. I’m really excited to work with her.”

Yahoo Finance

Two key questions as Congress scrutinizes records from Trump’s accountant

The New York attorney general’s lawsuit against Donald Trump last week revealed new details about the former president’s finances, but a Congressional probe could soon unveil additional documents that he’s long been trying to shield from public view.

The Daily Beast

Trump’s ‘Special Master’ Delay Is Already Backfiring

Photo Illustration by Thomas Levinson/The Daily Beast/GettyFormer President Donald Trump has learned time and again that the best way to kill legal action is to first delay it. And while Trump’s “special master” gambit initially showed promise in that regard, the tactic may have actually backfired and put him on a fast-track collision course with the federal government he once led.Two separate court decisions last week have empowered the FBI to move swiftly in its investigation against Trump for

Bloomberg

Buy US Treasuries to Prepare for 2023 Downturn, Citi Strategist Says

(Bloomberg) — Citigroup Inc.’s Steven Wieting says buying US Treasuries is the way to prepare for 2023, when an economic downturn will cut earnings and employment.Most Read from BloombergJohn Paulson on Frothy US Housing Market: This Time Is DifferentUK Market Selloff Slams Gilts, Pound, Piling Pressure on BOEStocks, Commodities Drop; US Treasury Yields Surge: Markets WrapWall Street Banks Prep for Grim China Scenarios Over TaiwanOnce-Hot Fake Meat Sees Sales Slide on Price and Being Too ‘Woke’

Associated Press

Sen. Sinema defends bipartisanship at McConnell Center

Most Americans prefer politicians who work across the aisle, Democratic Sen. Kyrsten Sinema said Monday in a forceful defense of her brand of bipartisanship, which has infuriated the left and is likely to draw her a primary challenge. Members of Congress face “intense pressure” to play to the extreme elements of their own party, alienating the American people from their government, Sinema argued in a speech in Kentucky, where she spoke at a University of Louisville center named for Republican Senate Minority Leader Mitch McConnell. “More and more it seems like Americans are being told that in order to be a member of either political party, you must adhere to a strict set list of policy viewpoints,” Sinema said.

Post a Comment