Report says Trump got help from Deutsche Bank with a hotel loan
Donald Trump received preferential treatment from Deutsche Bank to ease a loan to his Trump International hotel while in office, and also failed to disclose the source of $3.7 million in property bills generated by foreign governments, according to a report by a congressional committee Friday.
In a letter to the Director of the General Services Administration on Friday, two top Democrats on the House Oversight and Reform Committee, Carolyn Maloney and Gerald Connolly, accused the former president of providing “disinformation” about the loser Washington, D.C. hotel. Finance, as well as hiding hundreds of millions of dollars from his private debts.
The five star hotel that opened in September 2016 – weeks later trump I accepted the Republican nomination for the presidency – and it was the subject of insistence accusations of conflict of interest during his tenure. Critics claim the large-scale bookings on behalf of Saudi Arabia and other foreign governments were intended to curry favor with the president – something Trump has denied.
Maloney, who chairs the oversight committee, and Connolly, who leads the government operations subcommittee, said they obtained documents that shed new light on the former president’s dealings with Deutsche Bank, which became one of its biggest lenders after it was rejected by other banks after a number of bankruptcies.
The Trump Organization He criticized the report, calling it “intentionally misleading, irresponsible and unequivocally wrong.”
Regarding Deutsche’s loan in particular, he added, “at no time has the company obtained any preferential treatment from any lender.”
The German lender also disputed the committee’s conclusions and said that “the letter contains many inaccuracies regarding Deutsche Bank and its loan agreement.”
According to the commission’s findings, in 2018, the bank allowed Trump to defer principal repayments for six years on a $170 million loan for property that he had personally secured. Deutsche appears to have allowed those payments to be pushed back to 2024, when the loan was due to be paid in full, according to calculations provided by Trump and cited by the committee.
“Without this delay, the hotel may have needed to pay Deutsche Bank tens of millions of dollars more at a time when it was already facing huge losses,” the report stated, adding: “Mr.
A person familiar with the loan, who objected to the committee’s description, said it was always an interest-only facility until maturity. The person said basic repayment is only required if the value of the building drops below a certain percentage of the debt, known as a “loan-to-value” charter.
This person added that Trump never broke this covenant, blaming the Trump Organization’s accountants for inaccurately describing the terms of the agreement.
A spokesman for the House committee said its findings were drawn from audited financial statements that the Trump Organization and Allen Weisselberg, its chief financial officer, provided to the federal government and were certified as accurate.
Statements for 2016 and 2017 described the loan in consistent language as requiring no principal payments “until August 12, 2018”. The spokesperson said the 2018 statement then indicated that the principal payments were not due “to the due date,” or 2024.
“If former President Trump now believes these financial statements are inaccurate, it is the Trump Organization’s duty to correct the approved statements it previously provided to the General Services Administration,” the spokesperson said.
The commission has been investigating the hotel for a period of five years. Its report was based on documents delivered by the Public Security Agency, which awarded a 60-year lease to the Trump Organization to develop the historic Pennsylvania Avenue estate in 2012.
While Trump touted the success of the 263-room hotel, the commission found that he incurred more than $70 million in losses during his time in office, prompting the Trump Organization to pour an additional $24 million into the property to support it.
Trump has been trying to sell the hotel, even though the high asking price and the Covid-19 pandemic are hampering that effort.