Trump Sought a Loan During the 2016 Campaign. Deutsche Bank Said No.
By David Enrich, Jesse Drucker and Ben Protess
Feb. 2, 2019
Donald J. Trump was burning through cash.
It was early 2016, and he was lending tens of millions of dollars to his presidential campaign and had been spending large sums to expand the Trump Organization’s roster of high-end properties.
To finance his business’s growth, Mr. Trump turned to a longtime ally, Deutsche Bank, one of the few banks still willing to lend money to the man who has called himself “The King of Debt.”
Mr. Trump’s loan request, which has not been previously reported, set off a fight that reached the top of the German bank, according to three people familiar with the request. In the end, Deutsche Bank did something unexpected. It said no.
Senior officials at the bank, including its future chief executive, believed that Mr. Trump’s divisive candidacy made such a loan too risky, the people said. Among their concerns was that if Mr. Trump won the election and then defaulted, Deutsche Bank would have to choose between not collecting on the debt or seizing the assets of the president of the United States.
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In early 2016, as Mr. Trump was lending tens of millions of dollars to his campaign, his company contacted Ms. Vrablic about getting money for Turnberry, said two of the three people familiar with the request, who spoke on the condition of anonymity because they weren’t authorized to discuss the matter publicly. The proposal was to expand Deutsche Bank’s outstanding loans backed by the Doral by well over $10 million and to use the proceeds for work on Turnberry, the people said.
Around the time that Mr. Trump was winning New Hampshire, South Carolina and Nevada, officials in the private-banking unit informed their superiors that they were inclined to provide him with the loan, according to one of the people familiar with the internal discussions.
Senior executives in New York balked, arguing that Mr. Trump’s candidacy made such a loan unacceptably risky, the three people said. In part, they feared the bank’s reputation could be harmed if the transaction were to become public because of the polarizing statements Mr. Trump was making on the campaign trail.
http://www.nytimes.com/2019/02/02/business/trump-deutsche-bank.html?action=click&module=Top%20Stories&pgtype=Homepage
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