How Trump Became Deutsche Bank's Biggest Headache

LafayetteBis · Feb 16, 2017

From the Guardian: How Trump Became Deutsche Bank's Biggest Headache

Instead of draining the swamp, Trump has become Wall Streets best buddy

The language was scathing, the tone sarcastic. [Donald] Trump proclaims himself the archetypal businessman, a deal-maker without peer, the memo said. It mentioned Trumps boast that he was worth billions of dollars. And it listed his interests in numerous extraordinary properties across the world, from New York to Panama, not to mention his latest golf course in Scotland. Another document noted: Trump is no stranger to overdue debt.

The angry memos were written by lawyers acting on behalf of Deutsche Bank, Germanys biggest lender, which was suing the billionaire.

It was November 2008. Three-and-a-half years earlier the bank had loaned Trump the cash to build one of his grandest projects yet: A hotel and mega-tower in Chicago.

Trump had given his personal guarantee he would repay the $640m. As per agreement, he was now due to hand over a large chunk, $40m. There was only one problem: the future 45th president of the United States was refusing to pay up. Deutsche initiated legal action. Trump responded with a blistering, scarcely credible writ of his own, a 10-count complaint in New Yorks supreme court, in the county of Queens.

In it, Trump adopted a highly unusual defence, known as force majeure. He claimed that the 2008 economic crisis was a once-in-a-century credit tsunami, an act of God that was equivalent to an earthquake. Since it couldnt have been anticipated, and it wasnt his fault, he wasnt obliged to pay Deutsche anything. It wouldnt get the $40m or the outstanding $330m, his writ said.

He went further. Trump claimed Deutsche Bank had actually helped cause the crunch. Therefore it owed him. Trump demanded $3bn from Deutsche in compensation.

Its New York property division first loaned money to him in 1998 at a time when the bank was attempting to expand its commercial real estate portfolio. By that stage, other major banks were becoming cautious about Trump, in part, the Wall Street Journal has said, because of frustration with his business practices.

A decade later, Deutsche was to find out for itself quite how capricious and unpredictable he could be.

In the 2008 suit the banks unhappy lawyers quote from Trumps book Think Big and Kick Ass in Business and in Life. On his struggle with banks in the 1990s, Trump writes: I figured it was the banks problem, not mine. What the hell did I care? I actually told one bank, I told you you shouldnt have loaned me that money.

At the same moment Trump was suing Deutsche he was telling the Scotsman newspaper he was a very rich individual, with a billion in cash. He was willing to spend it on his latest project: a golf course and hotel near Balmedie in Aberdeenshire. Controversially approved by then first minister Alex Salmond and the Scottish government, it would be the worlds greatest golf course, Trump said
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Whatever the context, whatever the situation, he will use whatever words necessary even the most extravagant to claim the high-ground.

His entire life has been a charade. Lotsa luck, Uncle Sam ...

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How Trump Became Deutsche Bank's Biggest Headache

LafayetteBis Well-Known Member Past Donor

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How Trump Became Deutsche Bank's Biggest Headache

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