Report: Trump Organization Hoping They Can Make Loan Payments Later Than Usual
This week, it was revealed that 10 million Americans have recently filed for unemployment. The government has responded by sending many of these people $1200. Those payments, though, are weeks away and will not cover many individuals rent or mortgage payments.
Workers aren’t the only ones feeling the squeeze from an economy that has essentially stopped, corporations are hurting as well. This includes the Trump Organization, which the New York Times reports, is seeking to delay loan payments to Deutsche Bank.
David Enrich, Ben Protess and Eric Lipton write, “With some of its golf courses and hotels closed amid the economic lockdown, the Trump Organization has been exploring whether it can delay payments on some of its loans and other financial obligations, according to people familiar with the matter and documents reviewed by The New York Times.”
The article continues, “Representatives of Mr. Trump’s company have recently spoken with Deutsche Bank, the president’s largest creditor, about the possibility of postponing payments on at least some of its loans from the bank.””
The authors also note that this request could be advantageous for the bank. “Seizing the president’s personal assets would be an unattractive proposition,” they write. “But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank.”