- Deutsche Bank turned down a loan request made by President
Donald Trump during the 2016 campaign, The New York Times
- Given Trump’s campaign rhetoric, the German lender was worried
that public knowledge of a new financing arrangement would hurt its
reputation, the report said.
- Two House of Representatives committees are investigating
Deutsche Bank’s longtime ties to Trump.
The then-Republican candidate sought the loan for the Trump
Organization to finance work on a golf property in Turnberry,
Scotland, the report said.
The request was examined by the bank’s top brass, including
Christian Sewing, the former head of the wealth management unit who
is now CEO. They concluded that Trump’s campaign rhetoric made him
a risky borrower, and public knowledge of the loan arrangement
could hurt the bank’s reputation. They also weighed the risks of
the possibility that the bank would have to seize a president’s
assets in the event of a loan default, the Times reported.
A spokesperson for Deutsche Bank did not immediately respond to
a request for comment made outside normal business hours.
Deutsche Bank and Trump have a longtime financial
relationship and had other loans outstanding when the
campaign-season request was made. Trump previously tapped
Deutsche’s private-banking unit to finance his Chicago
The Times’ report came barely a week after Deutsche Bank
disclosed that the US House Financial Services and Intelligence
Committees had sent the lender
inquiries regarding its ties to Trump.
And that’s not the only such inquiry into Deutsche Bank’s
business. The firm has been named at the center of a $150 billion
money laundering scandal centered on Danske Bank’s operations
in Estonia. It’s alleged that Deutsche Bank processed a large chunk
of money for Danske Bank from Russia into international markets via
Tallinn between 2007 and 2015. Deutsche’s shares have tanked by
more than 50% over the past year.