Deutsche Bank's Default Threat Forces Trump To Repay Loan

For the past 10 years, Deutsche Bank has been Donald Trump's banking bestie, lending him more than $400 million as he developed a Miami golf resort, a tower in Chicago, and a luxury hotel in the heart of Washington, DC, Laura Italiano reported for Raw Story.

Photo Insert: Trump and Deutsche Bank are now in the midst of an ugly, shotgun divorce.

But the two are now in the midst of an ugly, shotgun divorce, according to revelations in a new court filing by New York's attorney general, Letitia James — with Deutsche Bank holding the shotgun.

Since Trump left office last year, the Frankfurt-based international bank — which has lent Trump far more than any other financial institution — has been steadily enforcing a "managed exit," as James' filing calls it, from a lucrative relationship with the former president stretching back to the 1990s.

On the surface, the slow-motion split, which began 21 months ago, appears to be a breezy affair, with Trump easily zeroing out all but $45 million in Deutsche Bank debt in May.

"By the way, I paid them back," Trump would brag on Fox News the night after James filed her massive, September lawsuit, accusing the former president of inflating his net worth in financial documents by billions of dollars.

"The banks made a lot of money," Trump told host Sean Hannity. "She's trying to defend banks that got paid off."

What Trump did not say was that Deutsche Bank was furious about his delayed responses to the bank’s inquiries and decided to issue a threat that made Trump cower in fear.

"As you know, Donald J. Trump is required under the terms of his loan guarantees to provide annual financial statements to Deutsche Bank and to ensure that those statements 'are true and correct in all material respects,'" the bank's attorney, Gregory Candela, wrote, quoting from the guaranty agreement for the $170 million Old Post Office loan.

Candela repeated Deutsche Bank's request for "further information" on the AG's fraud allegations made by New York Attorney General Laetitia James. Then he upped the ante, saying the bank needs that information in order to decide "whether an event of default may have occurred."

The bank lawyer then said he expects a prompt response. Trump scrounged for cash and paid up the Old Post Office loan and refinanced the others.

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