Trump’s debt a tough nut for Deutsche
Bank seeks to remove personal guarantee on loans
A small detail in Deutsche Bank’s loans to US President Donald Trump’s property business has turned into a headache at the bank, as its effort to restructure part of the $300m debt has stalled. The issue is a personal guarantee Trump gave Deutsche Bank when the debt was negotiated from 2012 to 2015, according to a person with knowledge of bank discussions. The debt — on a Florida golf resort, a hotel in Washington, DC and a Chicago tower — is being paid. But under the agreements, if the loans default, the German bank could go after Trump’s other assets. Since Trump won the presidential election in November, bankers have tried to eliminate the awkward prospect of someday collecting from a sitting US president. If the bank removes Trump’s personal guarantee, critics might accuse it of trying to curry favour with the president. If the interest rate rises as part of any restructuring, it could also risk the scorn of the Trump business organisation.
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