Deutsche Bank reportedly planned to extend the dates of $340 million in loans to Trump Organization to avoid a potential nightmare of chasing a sitting president for cash
- Deutsche Bank considered restructuring $340 million of loans to the Trump Organization over fears it could default while President Trump was still in office, Bloomberg reported Wednesday.
- According to the report, they considered extending loans due to be paid in 2023 and 2024, a timeframe which would overlap with Trump’s presidency if he wins a second term.
- Bloomberg said the bank’s executive board was “leery of the public relations disaster they would face if they went after the assets of a sitting president.”
- The Trump Organization denied the reports. President Trump’s son, Eric, described the story as “complete nonsense.”
- Deutsche Bank declined to comment to Business Insider.
Deutsche Bank, the biggest bank in Germany, reportedly considered rewriting the terms of a $340 million package of loans to the Trump Organization, fearing the nightmare scenario of having to pursue a sitting US President for cash were his company to default on its obligations.
According to a story published by Bloomberg Wednesday, the bank discussed extending repayment dates on the loans until 2025, by which time President Donald Trump would be out of office even if he won a second term in 2020. Bloomberg said its sources for the story were people familiar with the internal discussions.
After the story published, The Trump Organization strongly denied that any such restructuring was on the cards. Eric Trump, who is managing Trump’s business affairs while he is in office, called the story “complete nonsense.”