In the wake of last week’s deadly riots on Capitol Hill, Deutsche Bank and Signature Bank said they were cutting future ties with President Donald Trump.
It could leave the president personally hooked for millions of dollars when several large loans he personally guaranteed are owed in the next two years.
According to a person familiar with the matter, Deutsche Bank, where the president has two personally guaranteed mortgage loans totaling $ 340 million, has not threatened further business with Trump.
A spokeswoman for the company declined to comment, but U.S. chief of operations Christiana Riley wrote on LinkedIn last week that the riots were a “dark day for America and our democracy.”
“Violence has no place in our society and the scenes we have seen are a disgrace to the whole nation,” she posted. “We are proud of our Constitution and stand by those who want to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place.”
The German bank has endured a result of negative publicity after a series of investigations related to Trump’s finances, and allegedly looking for a way to close his relationship with the president.
In December, two of Trump’s personal bankers at Deutsche Bank, Rosemary Vrablic and Dominic Scalzi, who was responsible for managing the hundreds of millions allocated to him over the years, resigned. The reasons for the resignations were not clear.
Signature Bank has said it will close two personal accounts in which the president owns about $ 5 million.
“Signature Bank has begun the process of closing President Trump’s personal accounts,” company spokeswoman Susan Turkell said in a statement. “Signature Bank promises that in future it will not do business with members of Congress who voted to disregard the Electoral College.”
The bank also posted a statement on its website asking Trump to resign.
“We have never commented on any political issue before and hope to never do it again,” the statement said. “To see a riot in the chair of the US Senate and our elected representatives being asked to seek cover under their seats is appalling and an insult to the Republic.”
Previously, the bank was an asset to Trump and his extended family and network of colleagues. It helped fund a Florida golf course, which was lent to Trump’s former personal attorney Michael Cohen to invest in an apartment building in Manhattan, which was lent to Trump’s son-in-law Jared and Jared’s father, Charles. Trump’s eldest daughter, Ivanka, was sitting on the board at one point while it was being lent to her father. In 2013, she resigned, citing her “very demanding schedule,” reports American Banker.
The news of the banks’ move was first reported by the New York Times.
The Trump organization did not immediately respond to a NBC News request for comment.
As is typical with developers, Trump has a number of large interest-bearing loans on his properties that he regularly refinances. But the list of lenders willing to do business with Trump and transfer the loan is dwindling.
Ladder Capital, a small fixed investment trust specializing in riskier debt that many other banks avoid, Trump has issued millions of dollars in loans for four of its properties in New York.
Financial records filed with the New York Department of Finance show four loans by Ladder Capital to Trump for an estimated $ 282 million: $ 160 million for Wall Street 40, $ 100 million for Trump Tower, $ 15 million for Trump Plaza and $ 7 million for Trump International Hotel & Tower.
The loans were uncovered and first reported by Wendy Siegelman, an independent reporter who wrote for the Guardian and Buzzfeed.
The company did not immediately respond to a NBC News request for comment.
