Tycoon-in-chief BOOK REVIEW
The president doesn’t exactly have a sterling reputation for discretion, but if there’s one area where he exhibits a remarkable, vault-like secrecy, it’s the substance of his own finances. Repeatedly saying he’s “really rich” is one thing; actually proving it is another. The gilded atrium of Trump Tower on Fifth Avenue symbolises the opulence and glamour that President Trump has always wanted to project, but as the Forbes reporter Dan Alexander suggests in his new book, White House, Inc., more telling might be the 43rd floor of a “forgettable” office building in San Francisco.
There, Mr Alexander found a reception desk that sat “untouched,” and the only sign of (previous) life was a dead houseplant.
The office space represents just one of a number of opaque financial arrangements that Mr Alexander uncovered in his reporting for this book, which examines the money flowing into the president’s private coffers. The leaseholder in this instance is the Qatar Investment Authority, a sovereign wealth fund that Mr Alexander calls “an arm of the Qatari government.” The amount of rent the Qataris are paying is still a mystery. Mr Trump owns 30 per cent of the tower — a stake worth $517 million after debt — “making it the most valuable asset in his entire portfolio” and “just the sort of arrangement the founding fathers feared,” Mr Alexander writes. “A foreign government, it seems, has been secretly paying the president of the United States for more than a year.”
Mr Alexander recounts some of the better known financial scandals involving the Trump family business from the past few years, including the jacked-up membership fees at Mar-aLago and Mr Trump’s indefatigable and somewhat inexplicable attempts to build a skyscraper in Moscow. Upon assuming the presidency, Mr Trump refused to divest himself from his commercial interests, proclaiming that it would be sufficient for him to leave his business in a trust for his sons to run. But the president is still “the owner of over 100 entities,” Mr Alexander writes, “which, taken together, make up the Trump Organization, one of the most unusual businesses in America.” The result is another twist in the American experiment: “What happens to American democracy when the nation’s leader is a conflictridden businessman?”
Of course, Mr Trump had used this business experience as a selling point on the campaign trail — presenting himself as so rich that he wouldn’t be like any establishment politician, beholden to a donor class. The believability of the sales pitch rested on two not entirely believable assumptions: that Mr Trump was in fact as rich as he said he was, and that Price: he was capable Pages: of staying
satisfied with whatever amount of money he had.
Mr Alexander shows how Trump was so obsessed with his ranking on the annual Forb e s 400 list of the richest Americans that he became known at the magazine for trying to inflate his profits and hide his debts .“Most tycoons did not want to be on the Forbes list ,” he writes, presumably because of the scrutiny it invited, but Trump wanted it badly, and seemed to think that any journalistic due diligence could be simply undone by deflection and spin.
Mr Alexander explains where Trump adds to his fortune and where he loses some of it. A chapter on commercial real estate even includes a handy list of companies that happen to be in the “position of asking the federal government for favors while paying the president huge sums of money.” Mr Alexander calculates that a number of federal contractors who are set to pay $200 million in rent by the end of Trump’s first term in office are poised to “collect more than $10 billion in taxpayer dollars.”
The Trump International Hotel in Washington, D.C., located in the landmark Old Post Office building, opened to immediate controversy just weeks before the 2016 election. It looked like a place where it would be remarkably easy for D.C. swamp creatures and foreign governments to spend money and try to curry favour with the president — and it was, at least to a point. But Mr Trump had to take out an enormous loan from Deutsche Bank for renovations; operating costs were high, making profit margins low. Security issues and the deteriorating value of the Trump brand made it “less of a cash cow and more of a money pit.” The hotel was put on the market last fall. In April this year, after the pandemic hit, the Trump Organisation sought relief on the hotel’s lease payments.
The pandemic has provided an obvious test case that continues to decimate his considerable stakes in the hospitality industry. As much as Mr Trump says he loves money, White House, Inc. shows that he seems to have a hard time holding on to it. Mr Alexander estimates that if Trump had only done what ethics officials wanted him to do — liquidated his assets when he took office, and invested the proceeds in a nice, boring mutual fund modelled on the S&P 500 — the president now would be about $415 million richer.