"Even worse for James, he didn’t even say he was hurt. He just said he approved the loans because he knew Trump would pay them back and they accepted his teams valuation on his properties.
This is the biggest joke ever. No case. End this charade now. New York has more important things to worry about than protecting the interest rates of billion dollar banks."
To play Devil's advocate, Trump is being accused filing fraudulent financial statements which where then used to secure bank loans, it's not surprising a risk manager would testify. The Twitter user is not giving an accurate picture of the testimony
He just said he approved the loans because he knew Trump would pay them back and they accepted his teams valuation on his properties
This is not what quite what the bank guy said.
They didn't fully accept Trump's valuations. In 2012, they lowered the evaluation, on Trump Tower by $200 million from Trump's numbers because they learned a separate appraisal existed and in general they lowered the estimated value of Trump's overall worth.
At the height of its relationship with the Trump Organization the company loaned Trump over $378 million, and failed to commission independent appraisals of Trump's properties, Haigh acknowledged. While the bank listed lower estimates for the value of Trump's assets year after year, it continued to do business with Trump and his company.
KEY POINTS from yesterday
-Starting with the Doral golf club, Trump was taking his loans from Deutsche Bank, not from the Commercial real estate part of the bank, but from the personal banking side
-A bank wouldn't normally lend $125 million for someone to buy a golf club, because it's not an easy asset to sell in a default, so the loans were mainly based on Trump's overall wealth. Which is the main point of this trial.
-Since they weren't using the assets themselves as collateral they were relying on Trump's numbers "broadly." Trump was saying he was worth $4.3 billion at the time.
"I assumed that the representations of the assets and liabilities were broadly accurate,"
Deutsche Bank also made the loans contingent on several "covenants." One of which was Trump agreed to maintain a minimum net worth of $2.5 billion as a condition of the loan.
The loan memorandum prepared by Deutsche Bank included a covenant that the "Guarantor shall maintain a minimum net worth of $2.5 billion excluding any value related to the Guarantor's brand value," according to a document marked as evidence today.
The New York attorney general alleges that Trump's actual net worth at the time of the loan agreement was only $1.5 billion, an amount that would have triggered a default.
Trump tried to buy the Buffalo Bills and Deutsche Bank wouldn't lend him the money, but did help by saying he "wherewithal" to afford the team. This was based on statements from Jeffrey McConney, a Trump exec and a defendant in this case that Trump had $300 million in liquid assets.
the bank was still willing to help Trump by sending a letter to support his bid, according to Haigh -- on the condition that Trump Organization controller Jeffrey McConney certify that the company was still in compliance with the covenants of the three outstanding loans the bank had given Trump.
McConney verified that Trump had over $300 million in liquid assets in 2014,
Under cross examination by Trump's lawyers, the bank guy said
Haigh has acknowledged that Deutsche Bank's analysis supported approving Trump's loans.
...
Haigh also acknowledged that the bank failed to conduct its own independent appraisals of Trump's top properties, and did not rigorously examine his financial information.
"Even worse for James, he didn’t even say he was hurt. He just said he approved the loans because he knew Trump would pay them back and they accepted his teams valuation on his properties.
This is the biggest joke ever. No case. End this charade now. New York has more important things to worry about than protecting the interest rates of billion dollar banks."
https://nitter.net/Travis_in_Flint/status/1712249917962420416
To play Devil's advocate, Trump is being accused filing fraudulent financial statements which where then used to secure bank loans, it's not surprising a risk manager would testify. The Twitter user is not giving an accurate picture of the testimony
This is not what quite what the bank guy said. They didn't fully accept Trump's valuations. In 2012, they lowered the evaluation, on Trump Tower by $200 million from Trump's numbers because they learned a separate appraisal existed and in general they lowered the estimated value of Trump's overall worth.
KEY POINTS from yesterday
-Starting with the Doral golf club, Trump was taking his loans from Deutsche Bank, not from the Commercial real estate part of the bank, but from the personal banking side
-A bank wouldn't normally lend $125 million for someone to buy a golf club, because it's not an easy asset to sell in a default, so the loans were mainly based on Trump's overall wealth. Which is the main point of this trial.
-Since they weren't using the assets themselves as collateral they were relying on Trump's numbers "broadly." Trump was saying he was worth $4.3 billion at the time.
Deutsche Bank also made the loans contingent on several "covenants." One of which was Trump agreed to maintain a minimum net worth of $2.5 billion as a condition of the loan.
Trump tried to buy the Buffalo Bills and Deutsche Bank wouldn't lend him the money, but did help by saying he "wherewithal" to afford the team. This was based on statements from Jeffrey McConney, a Trump exec and a defendant in this case that Trump had $300 million in liquid assets.
McConney verified that Trump had over $300 million in liquid assets in 2014,
Under cross examination by Trump's lawyers, the bank guy said
It would be fraud if he a) didn't actually believe what he said and b) intended to never pay the loan back.
If either of those aren't true, then this isn't fraud, it's just paperwork disagreements to no material effect.
It's entirely a waste of the courts time to hear this matter.