In the wake of the deadly riots on Capitol Hill last week, Deutsche Bank and Signature Bank have said they are cutting future ties with President Donald Trump.
It could leave the president personally on the hook for millions of dollars when several major loans he has personally guaranteed fall due in the next two years.
According to a person familiar with the matter, Deutsche Bank, where the president has two personally guaranteed mortgages totaling $ 340 million, is refraining from continuing the business with Trump. The loans fall due in 2023 and 2024.
A spokeswoman for the company declined to comment, but the company̵
“Violence has no place in our society, and the scenes we witnessed are a disgrace to the entire nation,” she wrote. “We are proud of our Constitution and stand by those who try to uphold it to ensure that the will of the people is upheld and a peaceful transfer of power takes place.”
The German bank has undergone a rash of negative publicity following a series of investigations into Trump’s economy and reportedly was looking for a way to end its relationship with the president.
In December, two of Trump’s personal bankers at Deutsche Bank, Rosemary Vrablic and Dominic Scalzi, who were responsible for managing hundreds of millions over the years, resigned. The reasons for resignation were not clear.
Signature Bank said it closed two personal accounts where the president had about $ 5 million.
“Signature Bank began the process of closing President Trump’s personal accounts,” company spokeswoman Susan Turkell said in a statement. “The Signature Bank promises that it will not do business in the future with any members of Congress who have voted to disregard the Electoral College.”
The bank also published a statement on its website urging Trump to resign.
“We have never before commented on any political issue and hope to never do so again,” the statement said. “To witness a riot sitting in the President of the US Senate and our elected representatives being asked to seek cover under their seats is appalling and an insult to the Republic.”
In the past, the bank had been a go-to for Trump and his extended family and network of colleagues. It helped fund a Florida golf course, lent to Trump’s former personal lawyer Michael Cohen to invest in a Manhattan apartment building, lent to Trump’s son-in-law Jared and Jared’s father, Charles. Trump’s eldest daughter, Ivanka, was sitting at its table at one point while lending to her father. In 2013, she resigned, citing her “very demanding schedule,” American Banker reported.
The news of the banks’ movements was first reported by the New York Times.
The Trump organization did not immediately respond to a request from NBC News for comment.
As is typical of developers, Trump has several large interest-bearing loans taken out on his properties, which he periodically refinances. But the list of lenders willing to trade with Trump and transfer the loan is declining.
Ladder Capital, a small real estate investment firm that specializes in more risky debt that many other banks avoid, has issued Trump millions of dollars in loans for four of his New York properties.
Financial statements filed with the New York Department of Finance show four loans to Ladder Capital to Trump for an estimated $ 282 million: $ 160 million for 40 Wall Street, $ 100 million for Trump Tower, $ 15 million for Trump Plaza and $ 7 million dollars to the Trump International Hotel & Tower.
The loans were uncovered and first reported by Wendy Siegelman, an independent reporter who has written for the Guardian and Buzzfeed.
The company did not immediately respond to a request from NBC News for comment.