The New York Times blockbuster report on President Trump’s tax records has drawn renewed attention to the fact that Trump has hundreds of millions of dollars in debt, of which much debt comes in the next four years.
A lot has happened Speculative About which the President may have to pay so much money, and why.
But in fact, the answer – or at least, part of the answer – has been known for a long time. Trump owes millions of dollars to each of the two financial institutions: Deutsche Bank and Ladder Capital.
Trump revealed this in his financial disclosure forms when he first ran for the presidency in 2016, and journalists like Mother Jones’ Ros Choma have been writing about it. Choma wrote another piece earlier this year, making the case that Trump’s half-billion bailout may be “his biggest conflict of interest.”
Trump’s loans from Deutsche and Ladder were all linked to particular properties – they were either mortgages on his own properties, or loans to fund the development of a property. Still, there have long been questions about why Deutsche and Ladder would have loaned Trump so much, giving his creditors a history of hard work.
But overall, these loans are less mysterious than another aspect of Trump’s financial history – that from 2006 to 2014, he spent more than $ 400 million in cash on buying or developing various assets. Some reporters have long questioned how Trump got money for all of this, wondering if he had other sources of funds that he had not disclosed. And the Times’ first story on the new tax record doesn’t make it clear.
Most of Trump’s debts have been in plain view for some time.
The finances of the Trump Organization and Trump’s web of private businesses have long been opaque. Dan Alexander, A reporter for forbes, Calculates that the Trump Empire has a debt of at least $ 1.1 billion.
The New Times story focuses on the amount of debt that is personally guaranteed by Trump (rather than just his business) – which is $ 421 million according to tax records obtained by Times reporters. This is important because, theoretically, creditors for this debt can force Trump into personal bankruptcy if he is unwilling or unable to repay them.
The Times does not break down, which Trump personally guarantees holds all of the $ 421 million debt. But its report makes it clear that most of it is from German bank Deutsche. Specially:
- $ 160 million is from Trump’s loan to Deutsche to develop its Washington, DC, hotel
- $ 125 million for mortgage on Trump’s Doral Golf Resort in Miami from Deutsche
Trump has an intriguing history dating back to 1998 with Deutsche Bank. The New York Times’ David Enrich has said how Trump would get a big loan from one hand of Deutsche, get in trouble to pay back that debt, and then go to the other hand and Deutsche to get more money. At one point he filed a lawsuit to avoid paying the bank; The parties came to an end. Trump then repaid his settlement obligation with a loan from another division of Deutsche.
In early 2010, Trump ended up on Deutsche’s “private banking unit”, which manages Ultimatley’s finances. The private banking entity provided loans for the Trump Hotel’s development and the Doral Resort mortgage, as well as a loan on Trump’s Chicago Hotel.
Trump’s second-largest creditor, according to his financial disclosures, is a firm called Ladder Capital. (ProPublica reports that Jack, son of the Trump Organization CFO Alan Wesselberg, works on the ladder as an executive director involved in the loan.) The ladder provided Trump Tower a $ 100 million mortgage loan in New York City that in 2022 About to happen, plus a loan. For another Trump property, 40 Wall Street, valued at more than $ 50 million.
The Trump Organization has other large debts, but these are the biggest weights on Trump as they manifest in his personal financial disclosure forms.
There are questions about Trump’s assets for which he was not loaned
The more relevant secret about Trump’s money is not about these loans mentioned by the Times, which are forthcoming. It is about the properties that he bought and developed without any financial support.
David Fahnthold of the Washington Post has reported that between 2006 and 2014, Trump made a major change in the way he did business – he started leaving large amounts of cash to buy and develop certain assets rather than relying on loans. gave. Most notably, Trump bought and renovated a golf course in Turnberry, Scotland for $ 200 million – for which he paid in full cash.
Trump has claimed that he only had cash for this. But Adam Davidson of The New Yorker does not buy it.
Davidson wrote in 2018, “The portfolio of assets Trump possesses does not state that he will have enough money to carelessly spend a few hundred crores.”
“There is not enough money to get into Trump’s known business to cover the massive outlay spent on Trumpberry.” Davidson suggests that Trump’s expensive purchases like this Really can be “On behalf of others” – that he was looting money for some wealthy foreigners.
We have no idea where millions of crores in Trump used for Trumpberry and these other assets came from, and there is no hard evidence that it was linked to money laundering. But Trump has not provided any concrete explanation for this, so it remains an unsolved mystery.
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