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Deutsche Bank and Signature Bank will 'sever ties with Trump and his organization' following election loss and MAGA riots - but POTUS still owes them $300 million in loans

Deutsche Bank is to sever ties Donald Trump and the Trump organization but owes $340

  • Two of the banks Donald Trump does business with are pulling away from him
  • Deutsche Bank AG will not do any further business with Trump or his company
  • Trump still owes the German lender more than $300 million in loans
  • Bank felt its reputation would be harmed by a continued association with Trump
  • New York lender Signature Bank is cutting ties while pressing for his resignation 
  • Signature is closing two personal accounts in which Trump held $5.3 million
  • The breakaway is occurring in the wake of last week's deadly riot at the U.S. Capitol and months of Trump claiming the election was a fraud

Deutsche Bank AG is to sever all ties with President Trump and the Trump organization according to a source with knowledge of the sudden business decision.

But the bank will still be forced to deal with the Trump family and their employee for some time to come with outstanding loans of more than $300 million yet to be repaid.  

The decision by the German bank follows a glut of social media companies and other firms which are suspending links with the President following last week's rally at the Capitol which left five people dead. 

A second, smaller lender, Signature Bank which is based in New York, has also said it is to cut ties while pushing for the president's resignation.  

Signature has said it is closing two personal accounts in which Trump holds around $5.3 million.

Two of the banks Donald Trump does business with are pulling away from him. Trump is pictured last week at the 'Save America' rally

Deutsche Bank AG will not do any further business with Trump or his company, although Trump still owes the German lender more than $300 million in loans. Pictured the headquarters of Deutsche Bank in Frankfurt, Germany

Deutsche Bank AG will not do any further business with Trump or his company, although Trump still owes the German lender more than $300 million in loans. Pictured the headquarters of Deutsche Bank in Frankfurt, Germany

Supporters of U.S. President Donald Trump gather in front of the U.S. Capitol Building in Washington before the riots Wednesday

Supporters of U.S. President Donald Trump gather in front of the U.S. Capitol Building in Washington before the riots Wednesday

In November, Deutsche Bank said that Trump's longtime banker had resigned. 

Rosemary Vrablic, an employee in the private banking division, oversaw the approval of hundreds of millions of dollars in loans to Trump's company over several years. 

The relationship meant the bank came under pressure from lawmakers and prosecutors looking for information during Trump's presidency. 

As of November, Deutsche Bank had about $340 million in loans outstanding to the Trump Organization, currently overseen by his two eldest sons according to Bloomberg.   

The money comprises of three loans which are against Trump properties and start coming due in two years. The loans are current on payments and personally guaranteed by the president, according to two bank officials.

In November, Deutsche Bank said that Trump's longtime banker had resigned. Rosemary Vrablic, an employee in the private banking division, oversaw the approval of hundreds of millions of dollars in loans to Trump's company over several years. Vrablic is pictured with the president's son-in-law Jared Kushner

In November, Deutsche Bank said that Trump's longtime banker had resigned. Rosemary Vrablic, an employee in the private banking division, oversaw the approval of hundreds of millions of dollars in loans to Trump's company over several years. Vrablic is pictured with the president's son-in-law Jared Kushner

The loans, which are against Trump's golf course in Miami, and hotels in Washington and Chicago, are such that the Trump Organization has only had to pay interest on them so far, and the entire principal is outstanding. They come due in 2023 and 2024, the filings show. 

Both Deutsche Bank, top, and Signature Bank are severing ties with President Trump and the Trump Organization

Both Deutsche Bank, top, and Signature Bank are severing ties with President Trump and the Trump Organization

But the businesses backing the loans are currently facing challenges. 

The coronavirus-driven economic slowdown has hit the travel industry, including hotels. 

In October, Trump's plan to make money by developing houses and hotels on his golf courses, including one involving the Deutsche Bank loan, has not panned out so far.

Deutsche Bank executives are said to not be unduly concerned about Trump's ability to repay the loans, given the president's personal guarantees and the time left before they come due.

Nevertheless, in meetings in recent months, a Deutsche Bank management committee that oversees reputational and other risks for the lender in the Americas region has discussed ways in which it could rid the bank the relationship.

Over the years, the bank has lent Trump more than $2 billion.

Various ideas have been put forward to speed up the cutting of ties with one being to sell the loans in the secondary market. But the idea has not gained traction, in part because it is not clear who would want to buy the loans. Another alternative might be to forgive the loans altogether.

It has been known for several years that Deutsche Bank was looking at its relationship with Trump and in 2016 set up a working group to review its position.

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Comment by stephen myers on January 13, 2021 at 11:34pm

Trump the white trash Deutsche Bag goes to the trash bin.

Comment by vaughn mitchell on January 12, 2021 at 7:44pm
Humpty trumpty sat on a wall humpty trumpty , had a great, not all the crooked men could put crooked humpty back together again.

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