“Don’t Gain The World & Lose Your Soul.
Wisdom Is Better Than Silver Or Gold.”
If getting impeached twice isn’t enough for Trump, now he’s really getting a major shot to his ego. It looks as though Trump’s actions from January 6th are coming back to bite him in his backside which will do more damage than he ever imagined possible. The only thing that Trump the narcissist, ever prized are money and power which are quickly fading.
News broke last week that Deutsche bank delivered a major blow to Trump and his conglomerates. The German bank, one of Trumps major financial supporters, announced it will cut ties with Trump.
Deutsche has been Trump’s primary business lender since the 1990s and according to inside sources, is owed about $340 Million encompassing three loans.
Back in the 1990s, after half a dozen Trump bankruptcies, Deutsche was the only bank loaning Trump money when others including JPMorgan, Chase, and Citigroup cut ties with him and listed him as too risky for business dealings. Deutsche has lent Trump and his organizations upward to $2.5 Billion over the last 30 years.
One other financial institution also stepped away from Trump after the Capitol siege: Signature Bank, a New York-area institution, has called for Trump to resign and said it was closing two personal accounts where Trump kept about $5.3 Million. A spokeswoman from Signature Bank said the bank also won’t do business “with any members of Congress who voted to disregard the Electoral College.”
Banks aren’t the only funding source that dealt a brutal blow to his pocketbook this past week. Trumps corporate supporters are shutting off the money faucet too. Companies such as, The PGA, Bank of America, Facebook, Microsoft, Airbnb, Coca-Cola, Amazon, Verizon, AT&T, CNN just to mention a few announced they have suspended political donations and also vowed not to give money to the 147 Republicans who tried, unsuccessfully, to overturn President-elect Joe Biden’s victory.
The attack on the Capital changed everything, said Greg Valliere, chief US policy strategist at AGF Investments. Corporate executives are genuinely appalled. “Many business leaders felt a need to shame the Republicans who refused to accept the election results.” Republican Senators Ted Cruz and Josh Hawley, who led the Senate effort to overturn the election, also might be exiled for the rest of their careers.
The decision to dump Trump is politically convenient now and only comes after years of enabling him. Corporate America didn’t back Trump when he ran for office in 2016. But business groups enthusiastically embraced the Trump agenda after he won the White House. Big business got their deregulations, tax cuts and pro-business judges it wanted.
The corporate relationship first began to breakdown because of Trump’s stances on climate, immigration and race. CEOs scrambled to quit Trump’s advisory councils in August 2017 after Trump initially failed to condemn white supremacists at a rally in Charlottesville, Virginia.
Eleanor Bloxham, CEO of the Value Alliance, a firm that advises boards on corporate governance practices, said it’s critical that companies institute policies and practices to make sure they don’t “fall into the same trap again.”
That means companies and business groups must ensure that their political spending matches up with their publicly stated values and that those values are reflective of the ones held by their employees and customers. Bloxham said it remains an open question whether the insurrection at the Capitol delivered a lasting lesson to corporate America, or merely a fleeting one. However, she also said, “We’re a nation that forgets too easily sometimes.”
Trump has always found the means to pull himself out of bad situations. There was always some where he could tap for funds. It appears that all these businesses have finally come to the realization that Trump is toxic to their brands and are abandoning him. It’s just not good for business, when our Democracy is literally under attack by its own President.
Trumps net worth has been estimated at $2.5 Billion by Forbes. Virtually all of Trump’s $1.1 Billion of debt is backed by real estate, mostly linked to a small number of buildings and golf courses that form the core of the Trump business empire.
If Trump defaults on his loans, Deutsche can seize the golf courses and hotels secured by the mortgages, and if their value isn’t sufficient to repay the debt, the bank can go after Trump personally, who guaranteed the loans.
The situation is made more pressing for him because his primary source of income in past years was his work on television which is dried up. So, while the president is asset-rich, it is unclear how much liquidity he has access to.
Now that he’s lost the presidency, the federal government will continue his tax audits. The Manhattan DA is expanding its criminal investigations into Trump organization’s finances. We will learn the real truth behind why he didn’t want his taxes released and his real business high finances.
A great many of us already knew what Trump represented for this country. We always knew that Trump’s best seller book the “Art of the Deal” about the “mind of a brilliant entrepreneur” was and is nothing more than just a book of lies from a con artist. We presume Trump will do what he’s done his entire career, strategic bankruptcy which will once again erase all the president’s debt.