Dear Commons Community,
Over the past week, we have heard more about Donald Trump’s relationship with Deutsche Bank which is now the subject of two congressional committees and the New York State Attorney General. The New York Times published an article yesterday describing the Trump-Deutsche Bank relationship. Here is an excerpt:
“As President Trump delivered his inaugural address in 2017, a slight woman with feathered gray hair sat listening, bundled in a hooded white parka in a fenced-off V.I.P. section. Her name was Rosemary T. Vrablic. She was a managing director at Deutsche Bank and one of the reasons Mr. Trump had just taken the oath of office.
It was a moment of celebration — and a moment of worry for Ms. Vrablic’s employer.
Mr. Trump and Deutsche Bank were deeply entwined, their symbiotic bond born of necessity and ambition on both sides: a real estate mogul made toxic by polarizing rhetoric and a pattern of defaults, and a bank with intractable financial problems and a history of misconduct.
The relationship had paid off. Mr. Trump used loans from Deutsche Bank to finance skyscrapers and other high-end properties, and repeatedly cited his relationship with the bank to deflect political attacks on his business acumen. Deutsche Bank used Mr. Trump’s projects to build its investment-banking business, reaped fees from the assets he put in its custody and leveraged his celebrity to lure clients.
Then Mr. Trump won the 2016 election, and the German bank shifted into damage-control mode, bracing for an onslaught of public scrutiny, according to several people involved in the internal response.
In the weeks before Ms. Vrablic attended his swearing-in, the bank commissioned reports to figure out how it had gotten in so deep with Mr. Trump. It issued an unusual edict to its Wall Street employees: Do not publicly utter the word “Trump.”
More than two years later, Mr. Trump’s financial ties with Deutsche Bank are the subject of investigations by two congressional committees and the New York attorney general. Investigators hope to use Deutsche Bank as a window into Mr. Trump’s personal and business finances.
Deutsche Bank officials have quietly argued to regulators, lawmakers and journalists that Mr. Trump was not a priority for the bank or its senior leaders and that the lending was the work of a single, obscure division. But interviews with more than 20 current and former Deutsche Bank executives and board members, most of them with direct knowledge of the Trump relationship, contradict the bank’s narrative.
Over nearly two decades, Deutsche Bank’s leaders repeatedly saw red flags surrounding Mr. Trump. There was a disastrous bond sale, a promised loan that relied on a banker’s forged signature, wild exaggerations of Mr. Trump’s wealth, even a claim of an act of God.
But Deutsche Bank had a ravenous appetite for risk and limited concern about its clients’ reputations. Time after time, with the support of two different chief executives, the bank handed money — a total of well over $2 billion — to a man whom nearly all other banks had deemed untouchable.
Kerrie McHugh, a Deutsche Bank spokeswoman, said: “We remain committed to cooperating with authorized investigations.”
The White House referred questions to the Trump Organization. A company spokeswoman, Amanda Miller, declined to comment.”
It will be interesting to see how this plays out in Congress or in the New York State Attorney General’s investigation. It can have a serious impact on Trump’s business activities now and after he leaves office.
Tony
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