Even though he faces at least 10 civil lawsuits (E. Jean Carroll’s defamation lawsuit, Summer Zervos defamation suit, Mary Trump’s fraud lawsuit, etc.) a former White House prosecutor says it won’t be any of those actions that will leave the Trump Organization bankrupt.
Jill Wine-Banks appeared on MSNBC and noted that while any of the 10 civil suits could result in multi-million dollar settlements, they won’t be what eventually bankrupts Trump and his company:
“His popularity has diminished greatly. His properties are of less value now. Many buildings are taking the name Trump off of them because it is a deterrent to people, either playing golf at his golf courses or a deterrent to people buying condos in his buildings. So, it will hurt his bottom line both in terms of penalties — think about how many millions he may owe the federal government on the long-festering audit that he said was the reason he couldn’t turn over his financial records. Think about the bank loans that we know are coming due, and his income has gone down as best everybody can tell from all the reporting.”
Those bank loans, Wine-banks continued, are an enormous threat to Trump’s financial bottom line:
“So, where is he going to get the money to pay back those loans, and now a lot of banks will simply not lend to him anymore. So, how is he going to change the source of income to pay back the original lender with new lenders? So, it could totally wipe out the Trump Organization. There are some questions about some fraud in real estate and in defrauding people who bought condos. All of that mounts up, and eventually, the money runs out. So, he should be worried not just about whether he will be charged with a crime and whether a jury will convict him, but with being bankrupted.”
One of those loans is from Deutsche Bank, and it totals $340 million. The German bank has cut its ties to Trump and has also hinted it will seize the former president’s assets if he cannot come up with the millions he owes.
Business is way down at Trump properties, thanks in part to COVID fears and because the Trump name is now poison due to his failures as president.
The Trump Organization is hanging by a thread financially. And in the next few months we could see it collapse completely.
Here’s the video from MSNBC:
