A Deutsche Bank loaned President Trump more than $2 billion before he became president. This was in spite of a number of red flags that were surrounding Trump, according to the New York Times in a report on Monday.
The Times has interviewed more than 20 former and current executives and board members at Deutsche Bank for their story. The news source outlined how the president managed to get financing from the German bank for almost two decades despite his bankruptcies and his position as a client with risk by other banks and lenders.
The Times report comes after Germany’s two largest lenders, Deutsche Bank and Commerzbank, confirmed on Sunday that they were in talks about a merger. German-traded shares of both banks jumped higher on Monday.
According to the Times, Trump exaggerated his wealth and promised to reward bankers with a weekend at Mar-a-Lago and his private club in Palm Beach, Florida in order to get loans.
During the time in question, Trump used loans provided by Deutsche Bank to build skyscrapers and other high-end properties, according to the Times. For the German bank, its relationship with Trump was key in building its investment-banking business, the report said.
Deutsche Bank refused to comment on the Times report regarding their interactions with the president. The Trump Organization and the White House did not immediately reply to CNBC’s request for comment.
Trump’s relationship with Deutsche Bank has come under scrutiny in the U.S. The New York attorney general’s office and the Democratic-controlled Intelligence Committee and Financial Services Committee in Congress have been looking into the president’s financial ties with the German bank.
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