Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the bank considered extending the repayment dates, according to a Bloomberg News report Wednesday.
The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so they considered pushing out the due dates to 2025, the report said.
Ultimately, the bank apparently decided against taking actions for reasons that are not clear, opting instead to not do any additional business with Trump.
The president’s son, Eric Trump, called the story “complete nonsense.”
“We are one of the most under-leveraged real estate companies in the country. Virtually all of our assets are owned free and clear, and the very few that do have mortgages are a small fraction relative to the value of the asset,” Eric Trump told Bloomberg in an email. “These are traditional loans, no different than any other real estate developer would carry as part of a comparable portfolio.”
Deutsche Bank declined comment to CNBC. The White House did not immediately respond to a request for further comment.
President Trump has long done business with Deutsche Bank. Reports emerged earlier this month that the president had sought financing from the German bank in 2016 for a golf course in Scotland. The New York Times reported that the bank turned down Trump, again over concerns about possibly having to seize assets from a sitting president.
NSE: Trading maintains bearish trend on shares, index down by 0.07%
Nigeria spends N11trn for subsidy claims in six years – Senate panel
Facebook to reduce corporates, brands prominence on its news feed
Nigeria maintains control of refineries, approves new national gas policy
Mega, complex refineries, including Dangote's, to gain big from new IMO sulphur standards
Court rejects Nigeria’s Attorney General objection to MTN’s N3 billion suit
China announces tariff cut on import as trade war with the U.S. deepens
Nigerian bourse: Bearish sentiments persist in fourth consecutive trading session as stock prices fa...
Nigeria's DMO says to redeem N482bn worth of treasury bills in Q2'18
Losses in large caps pull down Nigerian equities index 0.52% as world stocks trade higher