Friday, June 9, 2023

Deutsche Bank to cut trade ties with Trump and his company as fallout from riot on Capitol Hill intensifies

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Deutsche Bank AG and Signature Bank, two of Donald Trump’s favorite lenders, are stepping down from the billionaire president following last week’s deadly riot on the U.S. Capitol.

The German lender has decided to no longer do business with Trump and his company, said two people familiar with the matter, asking not to be identified as the deliberations were confidential. Trump owes the Frankfurt-based lender more than $ 300 million.

Signature Bank, the New York lender who has long taken care of his family, is closing two personal accounts in which Trump held around $ 5.3 million, a company spokesperson said on Monday. He also calls on the president to step down before the official end of his term on January 20.

“We believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people,” the bank said in a separate statement Monday.

Lenders are following social media and other businesses to suspend relations with the president after encouraging participants in a rally last week to march on the Capitol, where they stormed the building and halted certification of the vote of the electoral college. At least five people died in the chaos and its immediate consequences.

“Yesterday was a dark day for America and our democracy”, German Bank Americas Director Christiana Riley posted on LinkedIn a day after the riot. “We are proud of our Constitution and support those who seek to uphold it to ensure that the will of the people is respected and that a peaceful transition of power takes place.”

The signature bank has served Trump and others in his orbit, including Ivanka Trump, Jared Kushner, and Michael Cohen. In 2011, the bank appointed Ivanka to its board of directors, but sheresignedseveral years later. The New York Times reported the breaking of ties earlier on Monday.

“We have never commented on a political issue and hope to never do so again,” Signature said in his statement. The bank will no longer do business in the future with any member of Congress who voted to ignore the Electoral College, the spokesperson said.

Deutsche Bank said last month that Trump’s longtime banker had resigned. Rosemary Vrablic, who worked in the private banking division, helped manage Trump’s relationship with the bank, with the German lender lending hundreds of millions of dollars in loans to Trump’s company over several years. This relationship has put pressure on the lender from lawmakers and prosecutors to obtain information during Trump’s presidency.

The Trump organization currently has three more loans worth about $ 300 million outstanding with the bank. They expire in 2023 and 2024.

Deutsche Bank has come under scrutiny over its ties to Trump throughout his presidency. He was so concerned about his exposure after his election, he consideredrestructuringloans, but ultimately decided not to do new business with him during his presidency, Bloomberg reported.

More to read absolutely financial cover of Fortune:


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