DONALD TRUMP’S ELECTION has likely given a massive lifeline to Deutsche Bank, the German financial firm that has been rocked recently by rumors that they would have to pay a $14 billion fine to the Justice Department over crisis-related mortgage abuses.
That money is unlikely to ever be imposed, now that one of Deutsche Bank’s biggest borrowers – Trump – will soon be sitting in the White House.
That conflict of interest is one of the innumerable ones facing Trump as he leaves his life of grifting behind and becomes the nation’s chief executive. While the Justice Department is nominally independent of the White House, I had to stop writing this sentence because of constant laughing. Trump could easily move to protect his personal investments by aiding his business partner Deutsche Bank.
After going through virtually every bank in the world to finance his many projects, Trump settled on Deutsche Bank as a lender of last resort. The private bank division of the firm has lent Trump $364 million in mortgageson his Doral golf club in Miami and hotels in Chicago and Washington, D.C., in the last few years, and at least $2.5 billion to Trump’s affiliated businesses since 1998, with another $1 billion in loan guarantees. The recent loans on the three properties all come due before 2024, but they could be re-negotiated, as is common with commercial loan enterprises.