General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWill banks call in Trump's loans?
Now that the Trump org has been indicted, banks can 'call in' loans with the Trump organization.
The banks, many European, often have clauses to protect the loans, if the borrower is indicted. Reports are saying, Deustche Bank, one of the biggest, does not have that clause...but nothing has been made available, to validate that exemption. I suspect we'll see important points, over the Independance Day weekend.
I, myself, think this 'call in' option will result in some very interesting media reports, especially from Euro news agencies.
This quote, from a politico.com article, sums it up well.
"...Murad Hussain, a partner in Arnold & Porters white-collar defense practice. Beyond the adverse publicity, an indictment might trigger a lenders rights to call outstanding loans, or give a government agency grounds to suspend a business license or the ability to participate in public programs. This isnt always guaranteed to happen, but if it does, its an uphill battle to undo the damage.
One of the biggest risks involves the companys debt and the Trump Organizations debts are reportedly immense. A Forbes investigation published in October 2020 calculated that Trump owes his creditors at least $1 billion. A spokesperson for Trump did not immediately respond to a request for comment."
Quote from Politico.com
By BETSY WOODRUFF SWAN
07/01/2021 05:15 PM EDT
Updated: 07/01/2021 05:32 PM EDT
https://www.politico.com/news/2021/07/01/trump-organization-indictments-497706
TreasonousBastard
(43,049 posts)he owed so much, overpaying on the Plaza Hotel and almost all of Central Park South, that the banks thought it better to let him stay in business and try to make a go of it than end up owning all of those overvalued properties.
They put him on a very short leash until he started making a living from the TV show.
lagomorph777
(30,613 posts)They know that the early bird gets the worm. The worm being Trump.
SoonerPride
(12,286 posts)He's too big to fail.
Buns_of_Fire
(17,158 posts)$100,000,000, they have a problem."
I don't think any bank is going to risk starting a run on TFG's assets, where everybody could wind up getting screwed -- including themselves.
LetMyPeopleVote
(144,939 posts)Kurt does not see how the Trump Org survives this without some sort of corrupt deal overseas. I tend to agree
Link to tweet
Link to tweet
Link to tweet
Link to tweet
Link to tweet
Link to tweet
Link to tweet
Link to tweet
no_hypocrisy
(46,034 posts)Lots of loans, lots of banks. May not have enough money (even after liquidation of assets) for everyone.
Then Chapter 9 of the Uniform Commercial Code takes over as far as establishing priority, IOW, who gets paid first and how much.
zuul
(14,624 posts)Russia, China and Saudi Arabia must be weighing the value of throwing him more lifelines.
If they think he will actually run for POTUS in 2024 and if he has a chance of winning, they might. Not that we will ever know.
Does anyone really know who was behind the Deutsche Bank loans to TFG? Someone bankrolled him at DB when no other lenders would touch him. My guess is Pooty Poot.
Blue Owl
(50,280 posts)Guess we'll find out just how fucking special little Donny truly is...