Hank Z / Daily Kos (01/09/2021)
Donald Trump’s financial difficulties are about to take another hit. MarketWatch is reporting that thanks to Trump’s failed coup, banks look to be wary of lending Trump and his organization money that will be needed to stave off possible bankruptcy.
It is well known that Trump owes Deutsche Bank at least $349 million dollars and that much will come due in the next few years. With the fact that COVID continues to rampage throughout the United States and is hitting the flagship of the Trump brand, hospitality, due to his inept handling of the pandemic, Trump is facing a cash crunch. His brand now has become toxic. In the world of finance, a brand becoming toxic means the loans dry up faster than the ground in the Mojave Desert during a drought.
A review of Trump’s mortgages shows that many of the loans required personal guarantees, likely a consequence of prior defaults and bankruptcies, including the high-profile failure of his Taj Mahal casino and hotel in Atlantic City, lawyers said.
That means it could be harder for Trump to walk away from the debt on any struggling properties without jeopardizing his personal wealth. Forbes puts Trump’s net worth at $2.5 billion, but his wealth has been a frequent topic of debate.
In November, Vornado Realty Trust, VNO, +0.70% a majority stakeholder in a venture with Trump on the iconic 555 California office building in San Francisco and 1290 Avenue of Americas in Manhattan, said on a quarterly earnings call that it continued to pursue a “sale, a partial sale, a joint venture, or a refinancing” of the two properties, despite prior offers falling short of initial expectations. Vornado didn’t respond to multiple requests for comment on the status of its partnership with Trump.
Donald Trump has no one to blame but himself for these problems. He thought he was smarter than anyone else, but it looks like his art of the deal will soon be renamed the art of the fail.