Donald Trump still personally guarantees $300M in Deutsche Bank loans

German lender struggling with ramifications of removing clause

New York /
Mar.March 27, 2017 01:10 PM

Deutsche Bank still hasn’t reached a deal to remove Donald Trump’s personal guarantees from around $300 million in real estate loans, more than three months after talks between the German lender and Trump’s associates were first reported.

With the guarantees still in place, the U.S. faces the unusual prospect of a foreign financial association going after a sitting U.S. president’s assets if he were to default.

Bloomberg reported that the bank’s senior executives have now taken over the matter from loan officers to determine its potential ramifications. If the bank simply removed the guarantees, it could be seen as being too soft on the president. If it asked for higher interest rates in return, it could anger the most powerful man in the world.

In 2012, Trump took out $125 million in loans from Deutsche Bank’s private banking group to finance his Trump National Doral Miami golf resort. According to filings with the federal election commission, the loan carries an interest rate of 1.75 percentage points over Libor.

In 2015, he borrowed another $170 million to fund the conversion of an old post office in Washington, D.C., into a hotel near the White House. Deutsche Bank also issued a loan against the Trump International tower in Chicago.

Trump’s Justice Department is currently investigating the Frankfurt-based lender on claims that it helped wealthy Russians move money under dubious circumstances, raising the specter of a conflict of interest.

In December, Bloomberg reported that the bank was in talks with Trump to remove the guarantees in a bid to minimize conflicts of interest. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
From left: John Perez, Christian Amato and Nathalia Fernandez in front of Jacobi Hospital in the Bronx (Getty Images, JacobiPeds.org, ChristianAmato.com, John Perez)
Candidates back affordable housing, but not in their back yard
Candidates back affordable housing, but not in their back yard
Mayor Eric Adams and 700 Eighth Avenue (Google Maps, LoopNet)
Midtown’s Row hotel to house up to 600 migrant families
Midtown’s Row hotel to house up to 600 migrant families
From left: Donald Trump and former Trump CFO Allen Weisselberg (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Former Trump CFO close to plea deal in tax fraud case: report
Former Trump CFO close to plea deal in tax fraud case: report
Arlington Village at 3100-3124 Atlantic Avenue in East New York, Brooklyn (Google Maps, Getty)
Developing in downtrodden areas gets dicey
Developing in downtrodden areas gets dicey
Gainesville mayor Lauren Poe (Facebook, Getty)
Gainesville close to ending single-family zoning
Gainesville close to ending single-family zoning
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...