During the former US President’s tenure, the house lost millions.
(Photo: AP)
new York Former US President Donald Trump brings new political anger to Deutsche Bank. A congressional committee investigated Joe Biden’s predecessor’s finances. The final report released on Friday concluded that Trump reportedly published “misleading information” about the Washington hotel belonging to his family business, the Trump Organization.
Accordingly, the five-star hotel should not have been profitable, as Trump originally stated. According to the report, losses of $ 70 million were incurred during Trump’s tenure, prompting the Trump Organization to put an additional $ 24 million into the project.
Trump opened the hotel near the White House in 2016, just weeks after accepting the presidential nomination. Since then, Trump’s dealings with this and other hotels have come under repeated criticism. The Democrats accuse him of having lobbyists from all over the world booked rooms there in order to better face the then US president.
Trump has been a customer of Deutsche Bank since the 1990s, which is said to have granted him and his companies around two billion dollars in loans over the years. In early 2017, when Trump moved into the White House, there were still around $ 350 million in loans, including for the renovation of the hotel in Washington.
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According to the report, in 2018 the bank is said to have allowed Trump to postpone the repayment of the $ 170 million loan by six years until 2024.
Buyer search is slow
“Without this delay, the hotel would have had to make additional payments to Deutsche Bank in the double-digit millions at a time when it was exposed to high losses,” write the democratic authors of the report. “Mr. Trump did not make these important assets of a foreign bank public during his tenure.”
Deutsche Bank rejects this, however, referring to “several false statements regarding Deutsche Bank and the loan agreements,” a spokesman clarified. According to financial circles, the loan to Trump was designed from the outset in such a way that he only had to make the interest payments and repay the entire loan amount at the end of the term.
The majority of loans on Wall Street for high net worth individuals are set up this way. During his tenure and beyond, Trump is said to have always paid interest on time. The real estate entrepreneur personally guarantees the loan. This would give the bank the right to take legal action in an emergency to gain access to the hotel and other assets.
Trump has been trying to sell the hotel for years, but the corona crisis recently put pressure on prices. According to industry experts, Trump’s image is not exactly helpful when looking for buyers.
More: Report: US Department of Justice was almost on the verge of revolt over Trump