The strangest thing

Listening to an interview with New York Times reporter David Enrich on NPR the other night, I heard a story that boggles my mind. When Donald Trump declared bankruptcy on six different enterprises, US based banks stopped lending him money. So, he went to German based Deutsche Bank for business loans.

Even there, Deutsche Bank’s investment bank soured on Trump and refused to lend him any more money. Then, its real estate mortgage bank soured on him and was owed US $50 million after refusing to lend him more. But, after bank leadership mandated no more lending to Trump, the story became even more bizarre.

Trump’s son-in-law, Jared Kushner, introduced him to a private wealth manager in New York for….Deutsche Bank. She arranged a $50 million dollar loan from Deutsche Bank’s private wealth group to pay back the outstanding loan with the real estate mortgage bank group within Deutsche Bank. Robbing Peter to pay Paul does not adequately define what happened. And, this is after Deutsche Bank leadership mandating no future loans with Trump. Enrich was unsure if this loan was still outstanding.

Having worked for a very conservative bank in my past, this is a quite surprising story. As a retired consultant, I am aware of one bank that had to be sold due to one very big loan defaulted. I am also aware of several banks who overextended themselves during the housing crisis that no longer exist. But, for Deutsche Bank to permit one part of the bank to pay off a loan from another part for a persona non grata individual, is quite strange and not in keeping with good stewardship.

It should be noted Deutsche Bank has been investigated and fined for money laundering for members of Russian oligarchy. It is also why there is interest in Trump’s financial dealings with this bank by the US Congress. Enrich noted Deutsche Bank is the “Rosetta Stone” to digging into Trump’s finances. This is why Trump has threatened to sue the bank to prevent such release.

1 thought on “The strangest thing

  1. Note to Readers: As the US President pushes back on stories about his financials, like anything he says or tweets, take his words with a grain of salt. He did declare bankruptcy for six enterprises, he was blackballed by US banks on future loans which he led him to Deutsche Bank and he has made several bad decisions that led to failure, but not necessarily bankruptcy. Of course, has been successful, but not always.

    What did not get much airplay last fall is The New York Times reporting the storyline the President uses that he started out with a $1 million loan from his father is untrue. His father transferred over $400 million to his son tax-free before he died.

    What frustrates me is there are so many real stories which are concerning, that people just get tuned out. John Oliver did a bit where he announced all of rhe trickle out stories about Trump’s Russian involvement, obstruction and campaign finance law violation and it shows how malfeasant the man has been. When it trickled out, we became inured to it.

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