Donald Trump could face some major financial troubles after the presidential election, with a new report claiming that Deutsche Bank AG is planning to cut ties with him and could ultimately seize some of his company's assets to pay off the hundreds of millions of dollars owed.
As Reuters reported, the lender is looking to end its relationship with Trump after the election in order to get away from the controversies and bad coverage it has received due to its financial connections to him. As The Inquisitr reported, the institution has been connected to allegations of tax fraud against Trump, with reports suggesting that they are likely in possession of information that could show whether the Trump Organization had falsified business records or committed tax fraud. He is reportedly facing investigation in New York on these allegations.
The report noted that the institution has close to $340 million in outstanding debt to the Trump Organization, with three of the loans against the company's properties coming due in the next two years. Deutsche Bank has reportedly loaned the organization more than $2 billion in total.
Reuters noted that a management committee has been meeting to discuss ways to sever the relationship. That could include selling the loans in the secondary market, though two unnamed officials told the news outlet that this could be difficult, in part because it was not clear who might want to buy them.
They could ultimately decide to start seizing some assets, Reuters added, though the plans may not come to pass should he defeat Joe Biden on Election Day and stay in the White House.
"Since Trump has personally guaranteed all the loans, Deutsche Bank could also seize the president's assets if he is unable to repay," the report noted, citing two officials.
A win in the presidential race would likely slow the process, with officials saying that they would not want the negative publicity that would come from seizing assets from a sitting president, and they would not go ahead with the reported plans. In this scenario, the loans would likely be extended until the end of his second term, at which time they would likely go ahead with cutting ties.
Trump's financial dealings have generated controversy, with critics accusing him of using his office to boost his own business interests. Unlike his recent predecessors, Trump did not cut business ties before entering office, instead claiming that he would not be involved in the operations of his company.