The Guardian

Deutsche Bank cuts ties with pres­i­dent

- Luke Hard­ing Ka­ly­eena Mako­rtoff Finance · U.S. News · US Politics · Politics · Business · Donald Trump · New York City · United States of America · The Trump Organization · International Hotel · Democratic Party (United States) · Washington · Ivanka Trump · Jared Kushner · AT&T · Marriott International · Republican Party (United States) · JPMorgan Chase · Goldman Sachs Group · Citigroup · Morgan Stanley · Florida · New Jersey · Coca-Cola Company · Christiana · Signature Bank

Deutsche Bank yes­ter­day be­came the lat­est large com­pany to cut ties with Don­ald Trump, re­port­edly an­nounc­ing it would no longer do busi­ness with the dis­graced US pres­i­dent.

The move by the Ger­man bank, re­ported by the New York Times, fol­lowed the storm­ing of the Capi­tol build­ing by a mob of the US pres­i­dent’s sup­port­ers, and joins the avalanche of cor­po­ra­tions dis­as­so­ci­at­ing them­selves from him.

Deutsche Bank has been Trump’s most im­por­tant lender, for more than 20 years. The Trump Or­ga­ni­za­tion, fronted by the pres­i­dent’s two older sons, owes the bank about $340m in out­stand­ing loans. It was the only bank will­ing to lend money to Trump af­ter his bank­rupt­cies in the 1990s.

The re­la­tion­ship sur­vived var­i­ous scan­dals. In 2008 Trump sued the bank’s real-es­tate divi­sion af­ter he de­faulted on a $40m re­pay­ment, used to fund the build­ing of the Trump In­ter­na­tional Ho­tel, and Tower, in Chicago. He ac­cused Deutsche of help­ing to cause the fi­nan­cial cri­sis and de­manded $3bn in com­pen­sa­tion. Deutsche’s pri­vate wealth divi­sion stepped in and lent him more.

Deutsche has re­sisted ef­forts by Democrats in the House and Se­nate to ex­plain its re­la­tion­ship with Trump – and to clar­ify if Rus­sian state banks or en­ti­ties un­der­wrote some of his debts.

But the riot in Washington last week and the threat of a se­cond im­peach­ment trial seem to have per­suaded Deutsche’s man­agers to end as­so­ci­a­tion with Trump. It is un­clear if this goes for oth­ers in his fam­ily. His daugh­ter Ivanka Trump and son-in-law Jared Kush­ner are Deutsche clients.

Sev­eral lead­ing firms in­clud­ing

Coca-Cola, AT&T, and the Mar­riott ho­tel chain, are to sus­pend po­lit­i­cal do­na­tions to Trump. They say they will not give money to Repub­li­can rep­re­sen­ta­tives who pro­moted Trump’s claim that the pres­i­den­tial elec­tion in Novem­ber was rigged and that he had “won” it. In the past they have do­nated also to Demo­cratic party can­di­dates.

Sev­eral of the big­gest banks in the US, in­clud­ing JPMor­gan Chase, Gold­man Sachs, Cit­i­group, and Mor­gan Stan­ley, will also sus­pend do­na­tions from their po­lit­i­cal ac­tion com­mit­tees.

Deutsche had been look­ing to end its links with Trump since Novem­ber, hav­ing grown tired of neg­a­tive public­ity, re­ported Reuters. “We are proud of our con­sti­tu­tion and stand by those who seek to up­hold it to en­sure the will of the peo­ple is up­held and a peace­ful tran­si­tion of power takes place,” Chris­tiana Ri­ley, head of Deutsche’s US op­er­a­tions, wrote last week.

Sig­na­ture Bank said it was clos­ing Trump’s two per­sonal ac­counts. It had fi­nanced his Florida golf course, and Ivanka Trump sat on its board.

The US Pro­fes­sional Golfers’ As­so­ci­a­tion said it would not hold its cham­pi­onship in May 2022 at Trump’s New Jersey golf club. “Con­duct­ing the PGA cham­pi­onship [there] would be detri­men­tal to the brand.”

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