Deutsche Bank AG is looking for a way to sever ties with President Donald Trump as the bank is tired of the negative publicity associated with him. According to three senior bank officials, they are waiting until after the U.S. elections to make a move.
Deutsche Bank has about $340 million in loans outstanding to the Trump Organization, the president’s umbrella group that is currently overseen by his two sons and has lent Trump more than $2 billion over the years, reports Reuters.
His accumulated loans are not due until 2023 and 2024, and Trump has personally assured the bank his debt would be paid, but the bank is still determined to end their relationship with him to reduce scrutiny (which will only increase if Democrats win the elections).
One idea the bank has would be to sell his loans to the secondary market, but the idea has not gained much traction and Deutsche Bank, the Trump Organization, and the White House have declined to comment.
According to Forbes, waiting until Trump leaves office would make it easier for the bank to demand repayment, sell the loans to another debtor, or foreclose if Trump can’t pay off or refinance the loans.
Sen. Elizabeth Warren, D-Mass., who sits on the Senate Banking Committee, has vowed to investigate the bank over its relationship with the Trump family. Such a probe would face fewer roadblocks if Democrats win back control of the upper chamber, reports Truthout.
The bottom line, writes Reuters, is that the matter won’t be resolved until well after the election.