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Deutsche Bank will not do more business with Trump

Germany’s largest bank has decided to refrain from future business with the president and his company, a person familiar with the bank’s thinking tells CNN Business. The news, first reported by the New York Times, follows last week’s deadly uprising at the US Capitol.
A spokesman for German bank (DB) declined to comment to CNN Business citing a ban on discussing potential customer relationships.

The move is the latest example of corporate setbacks against the president after his supporters vandalized the Capitol in a cheeky attack that left five people dead.

On Monday, the Signature Bank said it had begun closing Trump̵

7;s personal accounts and urged the president to resign. The US bank also said it “will not do business in the future with members of Congress who have voted to disregard the Electoral College.”

Trump has a checking account with Signature Bank, according to a 2019 financial release filed with the U.S. Office of Government Ethics. A revocable trust in the president’s name also has a money market account in Signature Bank, according to filing.

The loss of future business with Deutsche Bank is potentially a much bigger blow. The German bank has lent the Trump organization more than $ 300 million over the past decade and has helped fund several major real estate projects. There was no request from Trump for Deutsche Bank to borrow more money, said the person who knows the bank’s mindset.

The total lending from Deutsche Bank to Trump and his companies totals more than $ 2.5 billion, the New York Times reported in 2019.

Trump has several outstanding loans with Deutsche Bank, according to the president’s financial intelligence documents. The president has lent tens of thousands of dollars to the Trump National Doral, his South Florida golf resort. Deutsche Bank has also provided loans to the Trump International Hotel and Tower in Chicago and the Trump International Hotel in Washington, which opened in 2016.

It is not clear how Deutsche Bank will handle the loans once Trump has left the White House, especially with the hotel and hotel industry in sharp decline due to the pandemic. The loans fall due in 2023 and 2024.

Late last month, the two private bankers at Deutsche who worked most closely with Trump resigned their positions.

Christiana Riley, Deutsche Bank’s top executive in America, condemned the violence at the Capitol in a post last week on LinkedIn.

“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 Trump organization is under investigation by the Manhattan District Attorney’s office and the New York Attorney General, and both agencies have sued the bank over its lending relationship with the company.

Investigators are investigating whether the Trump organization misled or defrauded the lender by inflating the value of some of its assets, according to the court filing.

– Kara Scannell and Chris Isidore contributed with reporting.

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