Deutsche Bank, the largest bank in Germany, reportedly plans to rewrite the terms of a $ 340 million loan package to the Trump Organization, fearing the nightmare scenario of having to sue a US president for cash if his company was missing. to his obligations.
According to a Bloomberg article released Wednesday, the bank has considered extending loan repayment dates until 2025. President Donald Trump should be removed from office even if he wins a second term in 2020. Bloomberg said its sources were based on this article. people familiar with internal discussions.
After the publication of the article, The Trump Organization strongly denied any such restructuring. Eric Trump, who runs Trump's business affairs while he's on the job, has described the story as "total nonsense."
According to Bloomberg, the decision was discussed to make sure the loans are not in default while Trump was at the White House. Bloomberg reports that the bank's board of directors was "suspicious of the public relations disaster they would face if they attacked the assets of a president-in-office."
Bloomberg said that, ultimately, Deutsche Bank had decided not to restructure the loans, but had decided to no longer make new business with The Trump Organization while Trump was president.
Deutsche Bank declined to comment on Bloomberg's story and did not immediately return a request for comment from Business Insider.
In an email to Bloomberg, Eric Trump, son of the president and executive vice president of the Trump organization, denied the claims made in the article. "This story is nonsense," he writes.
"We are one of the country's most under-indebted real estate companies. Virtually all of our assets are free and clear assets, and the few who have mortgages represent a small fraction of the value of this asset.
"These are traditional loans, which do not differ from those that any other real estate developer would have in a comparable portfolio."
Deutsche Bank has a long and complicated history with President Trump and his companies. For example, the New York Times reported earlier in February that in the 2016 election, Deutsche Bank had denied Trump an increase in its loan to finance the work of its golf course in Turnberry, Scotland.
According to the Wall Street Journal, the bank also attempted to forgo a $ 600 million loan that it had made in 2016 to VTB Group, a bank owned by the Russian state, after it was closed. be questioned about Russia's interference in the 2016 election that had appointed Trump to the presidency.
Deutsche Bank shares have fallen nearly 50% over the last twelve months, under the impetus of two bank raids by regulators.
You can read the full story of Bloomberg here.