Yahoo Finance Major bank deals Trump billion-dollar blow after election warning
Major global bank Deutsche Bank will no longer do business with US President Donald Trump, as the fallout from last week’s violence continues to spread.
Deutsche Bank, which the Trump Organization owes US$300 million (AU$389 million) has “decided to refrain from personal business with Trump and his money”, a source told Bloomberg.
Short of forgiving the huge sum, the bank concluded that there was no other way to end its relationship with Trump before the loans become due in the next few years, The New York Times also reported.
Deutsche Bank has been lending to Trump since the late 1990s, and had lent more than US$2 billion (AU$2.6 billion) in the two years to November 2020.
It comes after reports on election day in 2020 that it was looking for ways to sever ties with the embattled head of state.
According to reports, the bank was growing tired of the “serious collateral damage” and bad press stemming from the relationship.
Signature Bank, which helped finance Trump’s Florida golf course, is also distancing himself from the outgoing president.
“We have never before commented on any political matter and hope to never do so again,” Signature said in a statement.
“We believe the appropriate action would be the resignation of the president of the United States, which is in the best interests of our nation and the American people.”
Trump has two personal accounts with Signature, holding around US$5.3 million and has banked with Signature since at least 2011.
Businesses distance themselves from Trump
Businesses from Forbes to Hallmark have condemned the violent insurrection which left five people dead last week, with Forbes issuing a stern warning to companies considering hiring former Trump officials.
“Let it be known to the business world: Hire any of Trump’s fellow fabulists... and Forbes will assume that everything your company or firm talks about is a lie. We’re going to scrutinize, double-check, investigate with the same skepticism we’d approach a Trump tweet,” Forbes editor Randall Lane wrote in the article titled ‘A Truth Reckoning: Why We’re Holding Those Who Lied For Trump Accountable’.
The 2022 golfing PGA Championship also stripped Trump National Golf Club of the championship this week, saying it would tarnish the PGA of America’s image.
E-commerce company Shopify has also shut down trumpstore.com, which sold Trump candles, shirts and bath bombs.
Trump has also lost access to the major social media platforms and could face trouble securing finance in the future.
The city of New York is also looking at terminating business relationships with Trump. The Trump Organization currently has contracts to operate two ice rinks, a golf course and a carousel in the city.
“The attacks on our Capitol killed a police officer, left four rioters dead, exposed lawmakers to COVID-19 and threatened the constitutional transfer of power. They were a national abomination,” a spokesperson for Mayor Bill de Blasio said.
“We’re reviewing whether legal grounds exist in light of these new circumstances to terminate concessions with the Trump Organization.”
Those parks concessions made the Trump Organization US$17 million, according to recent financial disclosures.
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