In late 2008, with the financial crisis in full swing, Donald Trump purchased a 92-story skyscraper in Chicago with the hope of extending a reputation in luxury properties.
Documents obtained by the New York Times show that the bank has forgiven the President for unpaid debt in the amount of $287 million, much of which is connected to the failed Chicago project. This is the first time the bank has forgiven the President for unpaid debt since 2010.
Deutsche Bank, a long-time lender of the President, provided the funds needed to secure the property and project.
The Trump International Hotel & Tower did not prove to be a lucrative endeavor and after lagging construction and little sales interest in condos resulted in Trump owing $334 million to Deutsche Bank.
Trump was given extended periods to make payments on the debt but the President sued Deutsche Bank and Fortress in 2008 for “predatory lending practices” and requested $3 billion. Deutsche Bank countersued and a settlement was made privately in 2010.
In 2019, New York Attorney General Leticia James began investigating the transactions between Trump and his many business dealings, including $99 million unpaid debt that was ultimately forgiven by Deutsche Bank in 2012.
Assistant Attorney General, Matthew Colangelo stated at the time per a report by Daily News “[The Office of Attorney General] is currently investigating whether the Trump Organization and Donald J. Trump… improperly inflated the value of Mr. Trump’s assets on annual financial statements in order to secure loans and obtain economic and tax benefits.”
Photo: Getty Images