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Business Donald Trump

Two Major Banks Sever All Ties To Trump As His Company Faces Financial Ruin

At the moment, literally nothing is going right for Donald Trump. Just consider:

 

  • He’s being investigated in New York for financial crimes and in the District of Columbia for inciting the riots at the U.S. Capitol
  • He’s being impeached for the second time, something that has never happened in the history of the country
  • In eight days, he loses all protection from being forced to appear in court if subpoenaed or indicted

As if that’s not bad enough, two giant banks have announced that they are cutting all ties with Trump and the Trump Organization, according to the New York Times:

“Deutsche Bank, which has been Mr. Trump’s primary lender for two decades, has decided not to do business with Mr. Trump or his company in the future, according to a person familiar with the bank’s thinking. Mr. Trump currently owes Deutsche Bank more than $300 million, which is due in the next few years. 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.

“Another longtime financial partner of the Trumps, Signature Bank, also is cutting ties. The bank — which helped Mr. Trump finance his Florida golf course and where Ivanka Trump, the president’s daughter, was once a board member — issued a statement calling on Mr. Trump to resign as president ‘in the best interests of our nation and the American people.’ Susan Turkell, a spokeswoman for the bank, said Signature had decided that it ‘will not do business in the future with any members of Congress who voted to disregard the Electoral College.’ Ms. Turkell said that in the wake of the riots the bank began closing Mr. Trump’s two personal accounts, which had about $5.3 million.”

All of this means that the Trump Organization — which is owned by the president and his three eldest children, Don Jr., Ivanka, and Eric — is now heavily in debt and unable to borrow from two banks that have been amendable to him in the past, as The Independent notes:

“According to Reuters news wire, Deutsche Bank has about $340 million in loans outstanding to the Trump Organization between 2023 and 2024, the umbrella corporation that manages the president’s vast international business portfolio.”

What will the Trumps do now that it appears their fortune is in jeopardy of being wiped out and their company bankrupted? Well, they’d best hope they have some money hidden in reserve somewhere, because they’re likely going to need it to pay their legal bills.