Trump's long-favored banks pull back amid fallout from riot

Marco Green
January 13, 2021

Multiple businesses are cutting ties with outgoing US President Donald Trump.

President Trump said Tuesday during a visit to the border wall in Texas that he bore no responsibility for fomenting the insurrection and warned that efforts to impeach him over his comments threatened only to further divide the country, "which is very unsafe".

The president held between US$5 million and US$25 million in checking-and-savings accounts at Capital One and between US$500,000 and US$1 million in accounts at JPMorgan Chase, according to the disclosure form. Signature Bank also ceased doing business with Trump and called for his resignation, according to a statement to Bloomberg. "As a matter of policy we do not discuss current or former customer relationships", the bank said in a statement. The vast majority of that is in an account for the Donald J. Trump Revocable Trust.

First Republic Bank, a California-based lender, held had as much as $50,000 for Trump in a checking account as of July 31, filings show. The bank's representatives didn't respond to a message seeking comment. "There was a single account, which was inactive and is closed", First Republic said in a statement. Banks say they won't lend to him anymore.

"In the span of four days, President Trump's family business has lost its online store, the buzz from Mr. Trump's promotional tweets about its luxury resorts and bragging rights as host to one of the world's most prestigious golf tournaments". Trump owes the Frankfurt-based lender more than $300 million.

Potentially most troubling of all is that several banks, including one of his biggest lenders, Deutsche Bank, have reportedly said they would no longer lend to Trump's company, raising the prospect that the president may have to dig into his own pockets to pay off his loans if he can not refinance.

Reuters reported in November that Deutsche Bank was looking for ways to end its relationship with Trump after the United States elections, as it tires of the negative publicity stemming from the ties.

Signage is seen outside the US headquarters of Deutsche Bank in New York City
Signage is seen outside the US headquarters of Deutsche Bank in New York City

US President Donald Trump's supporters gather outside the Capitol building in Washington DC on January 06, 2021. "The bank has concluded that, short of forgiving the debt, it has no way to extricate itself from the Trump relationship before the loans come due".

Deutsche Bank has also provided loans for the Trump International Hotel and Tower in Chicago and the Trump International Hotel in Washington, which opened in 2016.

Late last month, the two private bankers at Deutsche who worked most closely with Mr Trump resigned their positions.

Christiana Riley, the head of Deutsche Bank's United States operations, condemned the Jan 6 violence in Washington in a post on LinkedIn last week.

"We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place".

CNN reported that the Manhattan District Attorney's Office and the New York Attorney General had subpoenaed Deutsche Bank about its lending relationship with the Trump Organization while both agencies investigate the company.

Investigators are looking into whether the Trump Organisation misled or defrauded the lender by inflating the value of some of its assets, according to court filings.

Other reports by Click Lancashire

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