Trump Loan Approvals Relied on Financial Statements, with ‘Sanity Checks’
Donald Trump obtained hundreds of millions of dollars in loans using financial statements that a court has since deemed fraudulent, a retired bank official testified Wednesday at the former president’s New York civil fraud trial.
– New York (AP)
Their statements of the financial condition of Trump were the basis of his approval for a $125 million loan back in 2011 for the construction of his golf resort in Florida and a $107 million loan back in 2012 for his hotel in Chicago and a condo skyscraper, which was testified by the former risk management officer form Deutsche Bank, Nicholas Haigh.
“But although the bank didn’t conduct its own full appraisals of Trump’s properties, it sometimes gave sizable “haircuts” to the values he’d placed on such holdings as Trump Tower and his golf courses,”
Haigh added.
“I think the phrase we used might have been ‘sanity checks’ on the numbers,”
he further added.
Trump took help from these numbers to secure bigger loans and lower rates of interest, Haigh mentioned, who was heading the risk group for the private wealth management unit from 2008 to 2018.
Last month, a judge ruled out that the former President, along with his company, the Trump Organization, kept doing fraud for years by exaggerating the asset value of Trump and the net worth on the financial statements that he provided to banks, insurers, or others to secure loans or make deals.
Allen Weisselberg, the longtime finance chief of Trump, testified on Tuesday that the information in the financial statements was not always accurate. Trump, however, has denied any wrongdoings and emphasized disclaimers on documents that he mentioned alerted loan givers to do their own homework. The disclaimers mention, among other things, that the financial statements are not audited and that others may have different conclusions about the financial position of Trump if they had access to more information.
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