Germany’s Deutsche Bank reportedly is looking to cut ties with President Donald Trump following the election and “could seek to sell or demand repayment of about $340 million in outstanding loans to the Trump Organization,” Business Insider reported Tuesday.
Three senior bank officials told Reuters that executives are not concerned about Trump’s repayment of the loans, in part because there is a fair amount of time until they come due. If he leaves office and cannot make good on the loans, the bank could seize Trump’s assets, two officials said.
Business Insider reported:
Trump’s ties with Deutsche Bank have long been scrutinized. Over the years the bank has become the biggest lender to the Trump Organization, the umbrella company for Trump’s hotels, golf resorts, and other businesses.
But the bank is now reportedly keen to shed its last connection to the president: three loans, totaling about $340 million, personally guaranteed by the president and taken against the value of his properties. The loans are said to start becoming due for repayment in two years.
Given that the loans are personally guaranteed by Trump, if he is no longer in office and cannot repay them or refinance, Deutsche Bank could foreclose and seize his assets, two of the officials told Reuters.
Deutsche Bank, the White House, and the Trump Organization all declined or did not respond to a request for comment from Reuters, according to the report.