Trump's debt held by Wall Street could reportedly pose conflicts for new administration

Yahoo News, summarizing a Wall Street Journal report:

Wall Street holds hundreds of millions of dollars of Donald Trump 's debt, widening the number of potential conflicts Trump's businesses could pose for the incoming White House, The Wall Street Journal reported.

Trump's debt from his businesses and other properties is held by more than 150 financial institutions, according to the newspaper's analysis of legal and property documents. The debt is packaged as securities and has been sold to investors over the past five years, The Journal said.

"The problem with any of this debt is if something goes wrong, and if there is a situation where the president is suddenly personally beholden or vulnerable to threats from the lenders," said Trevor Potter, a general counsel to the presidential campaigns of Republicans George H.W. Bush and John McCain, told the Journal.
Yahoo News report

The article reminds us that Trump has been saying he'd divest himself of business interests for over a month now and keeps postponing the announcement.

WSJ goes into more detail

Hundreds of millions of dollars of debt attached to Mr. Trump’s properties, some of them backed by Mr. Trump’s personal guarantee, were packaged into securities and sold to investors over the past five years, according to a Wall Street Journal analysis of legal and property documents.

Mr. Trump has previously disclosed that his businesses owe at least $315 million to 10 companies. According to the Journal’s analysis, Trump businesses’ debts are held by more than 150 institutions. They bought the debt after it was sliced up and repackaged into bonds—a process known as securitization, which has been used for more than $1 billion of debt connected to Mr. Trump’s companies.

So what's the big deal?

Well, it's a financial leash. If Trump doesn't do what these businesses want, they can foreclose on his properties or start hitting him up directly (and filing lawsuits) for the money owed.

I don't think any human being would be at their top game if they were simultaneously being threatened with foreclosure on their businesses - while trying to deal with international crises.

WSJ goes into greater depth

Wells Fargo & Co., for example, runs at least five mutual funds that own portions of Trump businesses’ securitized debt, according to an analysis of mutual-fund data conducted by Morningstar Inc. for the Journal.
...
Wells Fargo is currently facing scrutiny from federal regulators surrounding its fraudulent sales practices and other issues. Once he takes office, Mr. Trump will appoint the heads of many of the regulators that police the bank.

So they could do a side deal about regulators who will go easy on them if they 'play ball' with Trump. This is nothing that will be to the advantage of the American public.

The last financial disclosure he did (according to WSJ) was ... edited and not a full disclosure

Last May, Mr. Trump filed a financial-disclosure form with the Federal Election Commission that listed 16 loans worth $315 million that his businesses had received from 10 companies, including Deutsche Bank AG. But that form reported debts only for companies he controls, excluding more than $1.5 billion lent to partnerships that are 30%-owned by him.

As an example of why this would be a problem, MetLife is in a regulations battle.

The loans on entities that are part-owned by Mr. Trump’s businesses are also controlled by financial institutions with big stakes in the president-elect’s agenda.

MetLife Inc., for example, has a $300 million loan to the limited liability company that owns 555 California Street, a 52-story San Francisco skyscraper. That LLC is in turn owned 30% by Mr. Trump and 70% by Vornado Realty Trust.

So MetLife could use that as a leveraging point to gain favors from Trump. Deutsche Bank (and other foreign investors) could also use this.

He could put a stop to it by fully divesting and releasing all his financial statements, leaving the potential abusers with nothing but air. However, his behavior to date suggests that he's not that wise and he will continue to hold on to these properties and investments -- even as people involved in the construction of the hotel in DC are suing him for non-payment.

I don't think that being sworn in as President is going to protect him.

Could...potentially...maybe....might....perhaps.

Alot of things COULD happen, these business related debts could become an issue and MAYBE be so bad as to lead to WW3
OR
They could be a non event and are just being used by the MSM as another hit piece on Trump

My money is on option number 2

I also think the article is a tad misleading, when it says "Trumps debts have been bundled up and sold as securities" its bundled with 1000's of other loans, there isnt a "Donald Trump debt" bond

Lol right who owns the Clinton's...besides everyone.

a reply to: IkNOwSTuff


Ironic that the monies/debt of the Bush family never received the slightest attention. It not like Trump is the first person of 'means' to hold high office. Electing paupers is a recent trend. In fact, none were paupers when they left office. Obama is estimated to now be worth 55 million. Not too shabby for a couple of hundred grand per year. The Clinton's a couple of hundred million or so.

So here's the choice buy off the paupers and get the preferential treatment or perhaps, PREHAPS, threaten the guy who is already comfortable, as they say. After all, he's much less likely to be 'bought off'.


I'll take Trump and his lesser 'liability', thank you very much....

a reply to: Byrd

Just a bunch of crap...at least Trump made his own money Hillary lied, cheated and stole her way. How about Saudis and other countries paying her way. Trump may be an ass but at least he ran his own companies and earned his own money. Hillary is a stooge nothing better than an arrogant prostitute.

I automatically believe all of it because:

according to a Wall Street Journal analysis of legal and property documents

every president who owned stocks had a potential conflict of interest.
every president who had a private retirement account that invested in stocks had a potential conflict of interest.
every president who had something that could go up or go down in value had a potential conflict of interest.

if your looking for a person to be president who has no potential conflict of interest, you aren`t going to find one.

originally posted by: BlueJacket
a reply to: Byrd

Just a bunch of crap...at least Trump made his own money Hillary lied, cheated and stole her way. How about Saudis and other countries paying her way. Trump may be an ass but at least he ran his own companies and earned his own money. Hillary is a stooge nothing better than an arrogant prostitute.

A stand up, hard working, tax paying citizen Trump is! /sarc

originally posted by: reldra

originally posted by: BlueJacket
a reply to: Byrd

Just a bunch of crap...at least Trump made his own money Hillary lied, cheated and stole her way. How about Saudis and other countries paying her way. Trump may be an ass but at least he ran his own companies and earned his own money. Hillary is a stooge nothing better than an arrogant prostitute.

A stand up, hard working, tax paying citizen Trump is! /sarc

Source?

originally posted by: reldra

originally posted by: BlueJacket
a reply to: Byrd

Just a bunch of crap...at least Trump made his own money Hillary lied, cheated and stole her way. How about Saudis and other countries paying her way. Trump may be an ass but at least he ran his own companies and earned his own money. Hillary is a stooge nothing better than an arrogant prostitute.

A stand up, hard working, tax paying citizen Trump is! /sarc

He flat out said he avoided paying taxes wherever he could, show me someone who doesnt and Ill show you an idiot

originally posted by: Byrd

The article reminds us that Trump has been saying he'd divest himself of business interests for over a month now and keeps postponing the announcement.

Trump will either end up as the world's richest man, at the end of his Presidency, or, he'll be totally bankrupt.

It all depends on how much opposition he gets to all his business dealings while in the White House.

He's surrounded himself with like minded folks, who all believer in the same doctrine "Think And Grow Rich". So, he's guaranteed himself lots of help. Still, there are opposing forces that aren't going to tolerate his private dealings. Interested to see, who has the real power in the US of A.

Seems like everyday we learn of another pie Trump has his fingers in. It's a messy situation and I don't envy anybody who has to sort it all out, but I don't believe Trump will come out of the Presidency all squeaky clean and adored.

This Presidency venture may be his ruin. He's never before been under this type of scrutiny.

originally posted by: nwtrucker
a reply to: IkNOwSTuff


Ironic that the monies/debt of the Bush family never received the slightest attention. It not like Trump is the first person of 'means' to hold high office. Electing paupers is a recent trend. In fact, none were paupers when they left office. Obama is estimated to now be worth 55 million. Not too shabby for a couple of hundred grand per year. The Clinton's a couple of hundred million or so.

So here's the choice buy off the paupers and get the preferential treatment or perhaps, PREHAPS, threaten the guy who is already comfortable, as they say. After all, he's much less likely to be 'bought off'.


I'll take Trump and his lesser 'liability', thank you very much....

The Bushes also didnt go around promising to release tax returns and never did nor did they say we will dis invest in our business dealings and never did. They just did both as required by the ethics groups to prevent conflicts of interest.

a reply to: Pyle


That ruined your whole day, did it?

I bet the assets are worth more than the debt.

originally posted by: nwtrucker
a reply to: Pyle


That ruined your whole day, did it?

You think me defending the Bushes some how made me sad? I like GHWB and I joined the USAF while GWB was still president.

a reply to: Pyle


I did like him. Liked his humor. His basic personality.

That was lost for me during this last election cycle.

America has 20 trillion dollars of debt. So what? America has F-35, Zumwalt. Want to fight? Bring it on!

originally posted by: BigTrumpFan
America has 20 trillion dollars of debt. So what? America has F-35, Zumwalt. Want to fight? Bring it on!

The secret of debt is that it has no value.

What has value is the knowledge and skills of the people.

The debt is just an illusion. It's an "idea" in the minds of people.

And like any "idea" it can be changed instantly, forgotten, eliminated, removed, with just a thought.

You'll still have the same roads, bridges, computers, houses, people, skills, know-how, that existed the instant before the debt was wiped away.

In biblical times, all debt was wiped clean every 7 years.

The society survived, because the people remained the same, and the "things" were all still there.

Forget the debt, get knowledge. It's a better idea to hold onto in the head.

I can see this opposition BS going horribly wrong for them.

America is all about making money.

Name me a GD country in the world that isn't.

Name me 1 person that doesn't want to make a buck for family, charity, or any other selfish or altruistic purpose.

Lately it's been few with access to make it.

Trump seems to be willing to share opportunity to everyone. Some will make more, gee ya think?!

Ya think that hasn't been the case forever? There will always be someone with more than you and me. BFD!

It's the old 'teach a man to fish" that he is going to practice. Can't fish without tackle you can't afford.

Maybe if it was easy to put food on the table, people wouldn't be such assholes to get it.

Ease the controls from these tin pot wannabe dictators that run the govt and private sector, carrot or stick, get it rolling, change of heart or get rid of them.