Deutsche Bank and Signature Bank end business relationship with Trump
President Trump’s bankers are walking away from him after the riot on Capitol Hill, heightening uncertainty over the future of his business empire as he prepares to step down next week.
Adding to the growing list of companies and social media platforms that are “canceling” Mr. Trump, New York City said it was examining the possibility of terminating its business relationship with its company to manage concessions of entertainment, including two Central Park ice rinks, grosses $ 17 million a year.
Deutsche Bank and Signature Bank have decided to end their business relationship with the president, cutting off what had been a major source of money for the Trump organization prior to Mr. Trump’s election.
The president owes more than $ 300 million to Deutsche Bank, headquartered in Frankfurt, Germany. The loans are due within the next four years. Bloomberg first announced the company’s decision.
Signature Bank, where Mr. Trump has checking and money market accounts, said it was also ending business with him. The bank called on Mr. Trump to step down after his supporters stormed the Capitol.
“We have never commented on a political issue and hope to never do so again,” the bank said in a statement. âWe have seen the President of the United States encourage rioters and refrain from calling on the National Guard to protect Congress in the line of duty. To ensure the peaceful transition of power, we believe that the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.
The president insisted on Tuesday that his speech last week to tens of thousands of supporters in Washington did not incite the deadly riot.
âPeople thought what I said was very appropriate,â Trump told reporters.
He said Big Tech was making a “terrible mistake” by banning it and calling these movements “very bad for our country”.
âAnd it gets others to do the same, and it causes a lot of trouble and a lot of danger,â Mr. Trump said. “They shouldn’t be doing it, but there’s always a counter-movement when they do.”
The social media ban cuts off the president’s preferred method of communicating with his supporters. After January 20, it will also block a cheap and easy way for Mr. Trump to promote his business.
Social media avoidance has spread to other potential sources of income for Mr. Trump. The PGA has announced that it will be withdrawing from its championship golf tournament scheduled for next year at Trump National Golf Club in Bedminster, New Jersey. Shopify closed stores affiliated with the president, and Stripe stopped processing payments on the Trump campaign website.
Neither the president nor the Trump Organization commented on one of the companies’ decisions.
Pope McCorkle, director of the Sanford School of Public Policy at Duke University, said Mr. Trump has likely damaged his business prospects through his actions in the final weeks of his presidency.
“It was such an easy scenario for him to step down and keep his political and economic brand intact,” McCorkle said in an interview. “And he seems to have thrown that out just for lack of restraint.”
He pointed out Mr. Trump’s secrecy regarding his income and tax records.
âWe don’t know what his exact financial situation is,â McCorkle said. “He could really endanger his brand just because he cuts off all sources of money.”
Former Trump lawyer Michael Cohen, now a scathing critic of the president, said Mr. Trump faces a post-presidency in which voters and potential clients will judge him only on the Capitol tragedy.
âThere’s before the riot, and there’s after, and that’s all that matters,â Cohen said on his podcast this week. âWednesday January 6 is all people will remember about Donald J. Trump. It will be his legacy. He propelled his âMAGAâ army into the attack on the nation’s Capitol. That’s it. Everything else he has done, good, bad and ugly, is framed under images of marauding truck drivers trashing the cradle of democracy.
Even before the backlash sparked by the riot, the COVID-19 pandemic had devastated tourism and entertainment industries, such as casinos, hotels and golf courses which are important parts of the Trump empire.
Mr. Trump’s golf properties had been losing money for years before the pandemic. According to a New York Times investigation of Mr. Trump’s tax returns, he said he lost a total of $ 315.6 million on his golf courses over the past two decades.
In Mr McCorkle’s view, this is in addition to the fact that the president faces the need to “try to reinvent himself in the right-wing spectrum of the media” after his departure.
âPerhaps he will be able to find a professional life after the presidency, but also in relation to politics. It is certainly limiting, âhe said.
Other former presidents signed lucrative book deals with publishers after they stepped down, and Mr McCorkle said Mr Trump would likely do the same. He published bestsellers before entering public service, although one of Mr. Trump’s greatest financial successes was his 14-year career as a reality TV star. His turn on âThe Apprenticeâ brought him in over $ 420 million.
The president has considered starting his own conservative news network or joining a similar outlet, according to people close to his thinking. He also maintained the option of running for president again in 2024.
One of the president’s wealthiest political backers, casino mogul Sheldon Adelson, died Monday night at the age of 87. He and his wife, Miriam, have donated tens of millions of dollars to campaign committees linked to Trump and other advocacy groups as part of the unsuccessful re-election effort.
âThe world has lost a great man. He will be missed, âMr. Trump said.
In addition to financial and political uncertainties, Mr. Trump faces possible legal jeopardy when he leaves office.
The Trump Organization is under investigation by the Manhattan District Attorney’s Office and the New York Attorney General for alleged fraud at Deutsche Bank by allegedly inflating the value of its assets. Both offices have sued the bank over its loans with the company.
Christiana Riley, head of US operations at Deutsche Bank, condemned the January 6 violence on Capitol Hill last week.
“We are proud of our Constitution and support those who seek to uphold it to ensure that the will of the people is respected and that a peaceful transition of power takes place,” she wrote on LinkedIn.
New York City officials said Monday they are reviewing whether they can legally end the city’s trading relationship with the Trump Organization, which operates a carousel, two ice rinks and a golf course in the areas. city ââparks. Laura Feyer, spokesperson for Mayor Bill de Blasio, a Democrat, said the review was prompted by Mr Trump’s alleged incitement to the crowd that stormed Capitol Hill.
âThe attacks on our Capitol killed a police officer, left four rioters dead, exposed lawmakers to COVID-19 and threatened the constitutional transfer of power. It was a national abomination, âshe said. “We are examining whether there is a legal basis in light of these new circumstances to end concessions with the Trump organization.”