The debt in question is related to the Trump International Hotel & Tower in Chicago, which is claimed to have been forgiven by banks over the past decade.
The report by the New York Times highlights that, the debt of $287 million, which was under President Donald Trump‘s name since 2010 has not been cleaned out yet. Addressing Trump’s federal tax-return documents, the NYT reported that the overwhelming majority of the total was tied to a Chicago skyscraper which failed to stand up to a good standard. On the contrary, banks allowed him to repay the debt and extended the time. The biggest bank, Deutsche Bank, lent him another $99 million. Even though with his position and power, he sued the bank. He has been getting extensions ever since the financial crisis. Especially when he became the president.
Trump has been getting extensions from banks on his debt ever since the financial crisis and especially since he became president.
NYT described Trump’s Chicago dealings as an example of Trump’s “ability to strong-arm major financial institutions and exploit the tax code to cushion the blow of his repeated business failures.” Deutsche Bank tried to settle the debts, alleging Trump of being such a usual freeloader. Some executives vowed to never again do business with the POTUS. As per the findings, Trump, Deutsche Bank and other stakeholders signed a transfer risk, cancelling about $270 million in debt in July 2010.
Based on Forbes magazine’s calculations of the current value of both its buildings, the sale of its partial investments in only two properties, the San Francisco office complex and the Las Vegas tower that includes a hotel and condos, could be worth $500 million on its own.
Trump called the reports fake and highlighted “I have very little debt compared to the value of assets,” So, the question arises, how can Trump get rid of all his debts which are on his head? One possible modus which he can smash is to get his lenders to provide funds, so that once and for all he can kiss goodbye to the excess baggage of liability. With the Times findings, Banks has always helped him to finance his casinos in Atlantic City and New Jersey.
The question arises, why did banks forgive millions of debt which is on Trump’s name?
Mike Offit, a retired Deutsche Bank executive who gave loans to Trump in the late 1990s, said that if decent cash was already tossed off by a property providing a bond. Everything else was okay, the best option for a bank with a Trump bond not likely to be repaid would be to simply push the payment schedule forward. He said – “and If I was sitting at my old job and next year there was a Trump loan due, and he’s the president, I’d just say let’s extend the maturity,”
President Trump’s debts total $1.1 Billion of which 900 million will be due in his second term if he wins in 2020.
Will Trump keep receiving extensions from Banks?
“Trump has a brand that has value,” said George Kent, Deputy Assistant Secretary of State for European and Eurasian Affairs. But, does it even value? Trump replied to concerns about the NYT report by calling it “completely false news” and claiming that he pays “a lot” in state and federal taxes. By revealing his tax return records to the media, he can put the form straight on what he has paid in federal income taxes for the last decade. He was given years of extra time by major banks and hedge funds to settle his debts.
Democrat Nancy Pelosi has said that the President’s debts pose a risk to the United States’ National Security.
When his skyscraper proved a disappointment, Donald Trump defaulted on his loans, sued his bank, and got much of the debt forgiven and largely avoided paying taxes on it.
Watch: Do Trump’s personal debts pose a National Security risk?