Finance

Deutsche Bank worried Trump Organization would default on loans, eyed changes: report

Deutsche Bank executives were reportedly worried in the aftermath of the 2016 presidential election that the Trump Organization might default on millions of dollars in loans, and discussed how to guard against that possibility.

Bloomberg reported early Wednesday that the executives considered extending repayment dates on $340 million in loans to the Trump Organization until 2025, after a potential second term for President Trump. The loans are due in 2023 and 2024.

Board members at Deutsche Bank worried that they would face public backlash if they went after the president's assets should he default on the loans, Bloomberg reported. The bank ultimately opted not to move forward with the plan, and instead has chosen not to do new business with the Trump Organization during his presidency, it added.

A spokesman for Deutsche Bank declined to comment to Bloomberg.

Eric Trump, the president's son and an executive vice president of the Trump Organization, told Bloomberg in an email that the story was "complete nonsense" and defended the family business. 

"Virtually all of our assets are owned free and clear, and the very few that do have mortgages are a small fraction relative to the value of the asset," he told Bloomberg. "These are traditional loans, no different than any other real estate developer would carry as part of a comparable portfolio."

Deutsche Bank has come under scrutiny for its ties to the president. 

Democrats indicated before retaking the House majority last fall that they were eager to look into the bank's relationship with Trump, hoping to expose potential financial crimes and connections to Russian oligarchs.

The bank has reportedly already provided records to special counsel Robert Mueller in his investigation into Russian interference in the 2016 election.

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