Two major banks cutting off debt-laden Trump, report says
Deutsche Bank AG and Signature Bank are severing ties with the debt-ridden president after violence at the US Capitol last week
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Deutsche Bank AG and Signature Bank, two of Donald Trump’s longtime and favoured banks, are severing ties with the debt-ridden president after violence at the US Capitol by his supporters last week.
Biggest creditor to Mr Trump, Deutsche Bank, said it will not carry on business with the president or his companies, the New York Times reported.
New York-based Signature Bank, that has long rendered its service to Mr Trump's family and associates, said it has closed two of Donald Trump’s accounts with $5.3 million and backed calls for his resignation.
"We believe the appropriate action would be the resignation of the president of the United States, which is in the best interests of our nation and the American people", the bank said in a statement on Monday.
The Frankfurt-based Deutsche Bank has relationship with the president dating back to the 1990s and had lend him over $2 billion over the years. The two have experienced an up-and-down relationship, suing each other earlier over disputes.
According to Reuters news wire, Deutsche Bank has about $340 million in loans outstanding to the Trump Organization between 2023 and 2024, the umbrella corporation that manages the president’s vast international business portfolio.
The banks’ decision came as social media giants suspended the outgoing president’s accounts and companies severed its ties after pro-Trump supporters laid siege on the US Capitol on 6 January, leading to the death of five people and dozens of injuries.
Christiana Riley, the head of America’s Deutsche Bank, denounced the riots through a LinkedIn post, saying it was “dark day for America” and democracy.
“Yesterday was a dark day for America and our democracy,” Ms Riley posted on LinkedIn a day after the riots. “We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place.”
Deutsche Bank was rattled with the negative publicity, had heightened scrutiny due to their association with Mr Trump, and had been looking to sever ties with the president post-election as he propagated his voter’s fraud conspiracy in the 2020 US elections.
The tough stance of the conglomerates against Mr Trump comes even as Trump Organisation continues to remain in the lurch over financial challenges. The online store of Mr Trump’s family business was taken offline in response to the riots earlier this week. Trump Organization’s golf and resort properties have also been losing money.
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