In the wake of deadly Capitol riots last week, Deutsche Bank and Signature Bank said they were severing future ties with President Donald Trump.
This could leave the president personally liable to millions of dollars when several large loans that he personally secured are due in the next two years.
Deutsche Bank, where the president has two personally secured mortgages for a total of $ 340 million, is refraining from doing more business with Trump, according to a person familiar with the matter. The loans are due in 2023 and 2024.
A company spokesman declined to comment, but the company’s head of operations in the United States, Christiana Riley, wrote on LinkedIn last week that the disturbances were “a dark day for America and our democracy”.
“Violence has no place in our society and the scenes we witness are a shame for the whole country,” he posted. “We are proud of our Constitution and we support those who seek to defend it to ensure that the will of the people is maintained and a peaceful transition of power occurs.”
The German bank faced a wave of negative publicity after a series of investigations related to Trump’s finances and was reportedly looking for a way to end its relationship with the president.
In December, two of Trump’s personal bankers at Deutsche Bank, Rosemary Vrablic and Dominic Scalzi, responsible for managing the hundreds of millions that have been awarded to him over the years, resigned. The reasons for the layoffs were not clear.
Signature Bank said it was closing two personal accounts in which the president held about $ 5 million.
“Signature Bank initiated the process to close President Trump’s personal accounts,” said company spokeswoman Susan Turkell in a statement. “Signature Bank promises that it will not do business in the future with any member of Congress who voted to disregard the Electoral College.”
The bank also published a statement on its website calling for Trump’s resignation.
“We had never made comments on any political issue and we hope to never do that again,” the statement said. “To witness a disorderly man sitting in the chair of the United States Senate chairman and our elected representatives being instructed to seek cover under their seats is terrible and an insult to the Republic.”
Previously, the bank had been a meeting place for Trump and his extended family and network of colleagues. He helped finance a golf course in Florida, loaned to former Trump personal lawyer Michael Cohen to invest in an apartment building in Manhattan, loaned to Trump’s son-in-law, Jared, and Jared’s father, Charles. Trump’s eldest daughter, Ivanka, at one point sat on his board while he lent to his father. In 2013, she resigned, citing her “highly demanding schedule,” reported American Banker.
News of bank movements was first reported by the New York Times.
The Trump Organization did not immediately respond to a request for comment from NBC News.
As is typical of developers, Trump has several large, interest-only loans taken out on his properties, which he periodically refinances. But the list of lenders willing to do business with Trump and postpone the loan is shrinking.
Ladder Capital, a small real estate investment fund specializing in riskier debt that many other banks avoid, has given Trump millions of dollars in loans for four of his New York properties.
The financial records submitted to the New York Department of Finance show four loans to Trump by Ladder Capital for about $ 282 million: $ 160 million for 40 Wall Street, $ 100 million for Trump Tower, $ 15 million for Trump Plaza and $ 7 million for Trump International Hotel E Torre.
The loans were first discovered and reported by Wendy Siegelman, an independent reporter who wrote for the Guardian and Buzzfeed.
The company did not immediately respond to a request for comment from NBC News.
