Deutsche Bank – one of the largest creditors of the former US President Donald Trump — became a victim of deception by the ex-president. During the trial last week, it became known that all this time the bank had distorted information about its most famous client
New York Attorney General sues Donald Trump and his associates for hiding from financial institutions and journalists the true size of his fortune for many years. The reason for this act of the ex-president remains unclear, but Forbes USA interview in 2015, he said such tactics “help with the lending process.”
Despite Trump’s loud statements, it remained unclear for a long time whether his lies really allowed him to get the loan he wanted, since banks always conduct thorough checks on borrowers. However, documents presented during the trial last week show that Deutsche Bank was caught in his web of lies. As a result, all this time the bank had distorted information about its most famous client.
The Deutsche Bank credit report describing the Trump Building at 40 Wall Street is riddled with misrepresentations. “The area of high-end office space in the 72-story skyscraper is 120,774 square meters. m,” the report says. “Based on the total area of the property, Deutsche Bank reported an adjusted value of $541.6 million.” According to documents filed with the US Securities and Exchange Commission and the New York Tax Commission, the building actually has 63 floors instead of the stated 72. The same documents show that the office space in the Trump Building is 102,193 square meters. . m. The total area of the building itself is 111,484 sq. m. m. An error in the size of the property alone could theoretically lead to Deutsche Bank overvaluing the Trump Building by about $50 million.
Trump has also long provided false information about Trump Tower in New York. “The 68-story building contains residential and condominium units owned by residents, as well as 16,537 square meters. m. of commercial space and 10,591 sq. m. m of retail space,” says the credit report. However, in reality the business center has fewer floors – floor numbers are missing from the sixth to the thirteenth, which gives the impression that the building is larger than it actually is. Also, the SEC report states that the business center has only 5,574 sq. m of retail space. Deutsche Bank valued Trump Tower at $349 million—the bank’s credit report did not indicate how an error in calculating the square footage would affect the valuation.
Deutsche Bank did not trust all the information Trump provided. However, the bank underestimated the extent of his lies—a mistake Forbes has also made in the past. The bank’s biggest miscalculation may have been its valuation of the clubs owned by the ex-president. Trump valued Mar-a-Lago, several U.S. golf clubs and three foreign golf resorts, which the report says generate an average of about $20 million annually, at more than $2 billion. Deutsche Bank cut that estimate by nearly half, valuing the properties at $1.2 billion. However, the resulting estimate is still $500 million higher than the actual state of affairs. After consulting with more than a dozen industry experts, Forbes USA valued Trump’s club properties at $700 million.
Deutsche Bank appears to have taken a more cautious approach to the properties it has secured mortgages on. These include the Trump International Hotel & Tower, a golf resort in Miami and real estate in Chicago. However, Deutsche Bank’s credit report shows that the golf resort generated $12.6 million in net operating income in 2017. But an earnings report filed with Miami officials and obtained by Forbes USA through an access to information request put net operating income at only a third of what was reported, at $4.3 million.
Deutsche Bank also believed the Trump Organization had net operating income of $7.6 million in 2017 from the Trump International Hotel & Tower. However, the House Oversight Committee released audited financial statements that cast doubt on that amount. Cash flows from Trump properties were below zero in 2017 and 2018, according to the documents.
The Trump Organization did not immediately comment about Deutsche Bank’s misrepresentations. The bank confirmed that it does not have complete information about Trump’s properties. “We are not at liberty to comment on the details of current or former customer accounts or the nature of legal claims based on certain facts that the New York Attorney General asserts were unknown or unavailable to the bank at the time in question,” a Deutsche spokesperson said in a statement. Bank. “The Bank takes seriously its legal obligations, including responding appropriately to authorized investigations and proceedings.”
RBC news agency, 01/12/2021, “NYT learned about the lender’s plans to forgive Trump’s debt after the storming of Congress”: Deutsche Bank, which is the largest creditor of the business of the current American President Donald Trump, will not cooperate with him due to the events in Washington on January 6. About it The New York Times reports citing a source familiar with the situation.
The German bank has been lending to Trump for the past 20 years. Now the companies owned by the president owe him more than $300 million. According to the NYT, the financial conglomerate intends to forgive Trump this debt, since otherwise it will not be able to sever relations with him before the end of the loan repayment period. New York’s Signature Bank, whose board of directors formerly included the president’s daughter Ivanka Trump, also intends to end its cooperation with Trump. Signature, in particular, financed the construction of a golf course in Florida. […]After the riots in Washington on January 6, Signature closed two of Trump’s personal accounts, which contained about $5.3 million. – Box K.ru
Interfax news agency, 12/23/2020, “NYT learned about the creditor’s plans to forgive Trump’s debt after the storming of Congress”: Two Deutsche Bank AG employees responsible for lending to US President Donald Trump and his son-in-law Jared Kushner have resigned.
“Rosemary Vrablik and Dominic Scalzi submitted their resignations to Deutsche Bank effective year-end, which the bank accepted,” Deutsche Bank said in a statement.
The New York Times was the first to report employees leaving the bank. Vrablik was a longtime managing director and senior banker at Deutsche Bank’s wealth management unit and helped manage hundreds of millions of dollars lent to Trump in recent years, the Times said.
Scalzi reportedly worked closely with her, and together they continued to deal privately with Trump on behalf of the bank after its commercial lending unit refused to engage with the president. According to the Times, Deutsche Bank lent more than $300 million to the Trump Organization through Vrablik. In August, the Times reported that Deutsche Bank was investigating a 2013 real estate deal involving Vrablik, Scalzi and a company partly owned by Kushner. — Insert K.ru
Translation by Ksenia Lychagina