If Donald Trump and the German bank Deutsche Bank are not family, little is missing. Not in vain, as the British newspaper has rightly pointed out Financial Times, “Donald Trump’s relationship with Deutsche Bank has lasted longer than any of the marriages” of the American politician.
When Deutsche Bank works for the mob
Two of Trump’s five children – Tiffany and Barron – weren’t even born when the politician-turned mogul was already doing million-dollar deals with money borrowed from the Frankfurt-based German entity. Since Trump began his financial relationship with Deutsche Bank in the last decade of the last century, it has been estimated that the German entity would have placed a total of 2,000 million dollars (about 1,646 million euros) in the hands of the now president of the United States.
With that money, Trump was able to finance projects in the real estate and tourism sector despite the fact that it was “radioactive for most banks,” as noted by the US newspaper. The New York Times. Before Deutsche Bank made Trump’s builds possible, Trump had experienced enough business failures that ended in loan defaults.
However, with Deutsche Bank, an entity that for many has been characterized by an aggressiveness in its practices in many cases questionable and even punished by the authorities, Trump’s record was not an impediment to doing business with him.
The ‘romance’ between Trump and Deutsche Bank – like that of any marriage – is fraught with good times, bad and even the exchange of complaints. But according to David Enrich, a journalist for the The New York Times and author of Dark Towers – “Dark Towers “– (Ed. Custom House, 2020), a volume on the history of Deutsche Bank, the relationship between Trump and Deutsche Bank “has been positive for both the loyal bank and the valued customer.”
Now, last week, Trump appeared to incite rebellion in the incidents that led to the seizure of the Capitol, where five people were killed, including a police officer. These events have led to a impleachment historical. It is the second that the head of state still faces in the United States.
Trump, from “precious client” to image problem
In this context, it seems that the “precious client” may end up becoming an important part of the image problems that an entity like Deutsche Bank accuses, a bank that has been and is often in the news due to the sanctions, fines or millionaire agreements reached for avoiding lawsuits in cases ranging from alleged money laundering to paying bribes or even plugging in young Chinese and Russians in exchange for business in those countries.
Hence, it is news these days that Deutsche Bank’s desire to end its relationship with Donald Trump has been aired, as recently reported by the Bloomberg agency and the The New York Times.
In fact, before the last presidential election, in which Trump would end up losing to the Democratic Party candidate, Joe Biden, the Reuters agency had also realized that the German bank wanted to end the millionaire ties that still bind the president. outgoing United States.
The events of last week have generated important gestures that suggest that the German entity is ready to end the long chapter of its history with Trump in the United States. Not surprisingly, in statements collected by Bloomberg, Christiana Riley, the head of Deutsche Bank America, pointed out on account of the disturbances in the Capitol that what happened in Washington DC turned that day into “a black day for the United States and democracy.” American.
“We are proud of our Constitution and we support those who want to ensure that the power of the people is maintained and that a peaceful handover takes place,” Riley noted. In those words he did not seem in any way to be alluding to Trump.
Almost 300 million euros in loans
Thus, it is not surprising that the Reuters agency quoted internal sources from the German bank a few days ago when it realized that the entity is looking for a way to turn its back on the outgoing president of the United States.
That will not be an easy thing, in any case, because The Trump Organization, the business group that runs the business of the tycoon – currently in the hands of the sons of the US head of state – has yet to repay a loan of 340 million dollars ( about 280 million euros). According to what has transpired, that money, necessary in three of the tycoon’s projects – a golf course in Miami and two hotels in Chicago and Washington – must be returned between 2023 and 2024.
It is speculated that, since the coronavirus crisis has hit the sectors that support the economic activities of the Trumps, that money cannot be returned in a timely manner. Before becoming president, Trump used himself as a personal guarantee when asking for that money. This means that if Trump cannot repay the loan, he could end up being repossessed.
Of course, “it seems unthinkable that the properties of a former president could be seized”, as the economic pages of the conservative newspaper have recalled in Germany Frankfurter Allgemeine Zeitung. This eventuality is unprecedented and therefore highly unlikely for many.
Before that extreme occurs, there are other options for Deutsche Bank. For example, reselling Trump’s loans, sources from the German entity have told Reuters. Be that as it may, “the divorce” between Deutsche Bank and Trump appears as complicated as the history that unites them is old.