Donald Trump’s Deutsche Bank Ties Unravel

The relationship between the Trump family and German lender Deutsche Bank has been a key focus of inquiry in recent days during the $250 million lawsuit against the former president, his sons Donald Trump Jr. and Eric Trump, and The Trump Organization.

This week, Donald Trump and his eldest daughter, Ivanka Trump, have both testified as part of New York Attorney General Letitia James’ lawsuit accusing Trump of filing fraudulent financial statements which inflated the value of his properties and assets to obtain perks such as favorable loans and tax breaks.

In a key moment in his Monday testimony, Trump, who denies all wrongdoing in connection to James’ suit, admitted that his real estate company, The Trump Organization, submitted financial statements—which Judge Arthur Engoron has already ruled as being inaccurate—”to induce lending.”

The admission came after the former president was shown a 2011 Deutsche Bank term loan agreement, which Trump had signed and appeared to confirm that the submitted property valuations were done so to receive loans from banks and insurers.

On Wednesday, Ivanka Trump was also called to testify in the civil trial, despite being removed from the case in June. James’ office subpoenaed Ivanka Trump to testify as they believe she still played a part in filing the financial statements while working as executive vice president at The Trump Organization, and used them to obtain three loans from Deutsche Bank in 2012 and 2013.

Former President Donald Trump leaves the courtroom on November 6, 2023, in New York City. Trump and his eldest daughter Ivanka Trump both testified this week at the $250 million civil fraud trial. Michael M. Santiago/Getty Images

During her testimony, Ivanka Trump said that she worked on real-estate deals for the family company, but said she was not involved in calculating Trump’s net worth or submitting the financial statements.

On Wednesday, Ivanka Trump was asked questions about a 2011 email in which she acknowledged her father may not be able to meet a requirement from Deutsche Bank that his net worth be above $3 billion so a deal with the lender to purchase the Doral golf club in Miami could go through. The emails appeared to show that Ivanka Trump still wanted the company to approve the deal regardless.

“We wanted to get a great rate and the only way to get proceeds/term and principal where we want them is to guarantee the deal,” she wrote to a Trump Organization lawyer.

At the trial, she was shown a 2011 email in which she acknowledged that a requirement by lender Deutsche Bank that her father maintain a net worth of at least $3 billion was a problem that they “have known from day one” but encouraged company officials to approve it anyway.

“We wanted to get a great rate and the only way to get proceeds/term and principal where we want them is to guarantee the deal,” she wrote to Trump Organization lawyer Jason Greenblatt.

Another email in which Ivanka Trump sent to then Trump Organization Chief Financial Officer Allen Weisselberg said that the terms of said loan “doesn’t get any better than this” and asked that it be discussed “asap.”

A deal was eventually struck, with Trump as a guarantor, for the Deutsche Bank loan to go through, providing the former president’s net worth was above $2.5 billion. That year, Trump claimed a net worth of $4.3 billion in financial statements, with James’ office stating Trump’s net worth was actually $1.6 billion in 2011.

Trump’s legal team has been contacted for comment via email.

Ivanka Trump answered “I don’t recall” when asked about her apparent role in obtaining loans for The Trump Organization through Deutsche Bank. Prosecutors allege that the financial statements were used to mislead lenders to give the company better bank loans.

Ivanka Trump denied that her family misled Deutsche Bank, and that they had a positive relationship for years. Ivanka Trump also cited her close ties with Rosemary Vrablic, who led a private banking team at the bank and helped finance major real estate projects headed by The Trump Organization.

“I was constantly told by Rosemary and members of her team how much they appreciated the relationship,” Ivanka Trump told the court.

During his testimony, Trump said that he had no issue meeting the $2.5 billion net worth threshold to secure the loan to purchase the Doral golf course, as he could have provided “just a few assets” as proof.

Trump also said he believes he complied with the loan requirement put forward for the Chicago International Hotel & Towers based on his net worth.

“This loan was paid off in full, with no default, with no problem and the bank was thrilled. They got all their money back,” Trump said. “The bank liked me very much.”

Deutsche Bank cut ties with Trump in 2021 in the wake of the January 6 attack at the Capitol.

In October, former Deutsche Bank risk management officer Nicholas Haigh testified that the former president was able to obtain hundreds of millions of dollars in loans after using fraudulent financial statements.

“I assumed that the representations of the assets and liabilities were broadly accurate,” Haigh said of Trump’s financial statements.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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