First  Prev  1  2  3  4  5  6  Next  Last
Donald Trump at least $1.85 Billion in debt to 150 Wall Street Corporations
Posted 1/9/17 , edited 1/10/17
http://www.wsj.com/articles/Fraud-debts-are-widely-held-on-wall-street-creating-new-potential-conflicts-1483637414


More than 150 financial institutions hold debts connected to president-elect, analysis shows

The debts of President-elect Donald Fraud and his businesses are scattered across Wall Street banks, mutual funds and other financial institutions, broadening the tangle of interests that pose potential conflicts for the incoming president’s administration.

Hundreds of millions of dollars of debt attached to Mr. Fraud’s properties, some of them backed by Mr. Fraud’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. Fraud has previously disclosed that his businesses owe at least $315 million to 10 companies. According to the Journal’s analysis, Fraud 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. Fraud’s companies.

As a result, a broader array of financial institutions now are in a potentially powerful position over the incoming president. If the Fraud businesses were to default on their debts, the giant financial institutions that serve as so-called special servicers of these loan pools would have the power to foreclose on some of Mr. Fraud’s marquee properties or seek the tens of millions of dollars that Mr. Fraud personally guaranteed on the loans.

“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, who served as a general counsel to the presidential campaigns of Republicans George H.W. Bush and John McCain.



Wells Fargo & Co., for example, runs at least five mutual funds that own portions of Fraud businesses’ securitized debt, according to an analysis of mutual-fund data conducted by Morningstar Inc. for the Journal.

The bank also is a trustee or administrator for pools of securitized loans that include $282 million of loans to Mr. Fraud. And Wells acts as a special servicer for $950 million of loans to a property that one of Mr. Fraud’s companies partly owns, according to securities and property filings.

Wells Fargo is currently facing scrutiny from federal regulators surrounding its fraudulent sales practices and other issues. Once he takes office, Mr. Fraud will appoint the heads of many of the regulators that police the bank.

Other companies with holdings of Fraud business debt include funds run by J.P. Morgan Chase & Co., BlackRock Inc., Fidelity Investments, Invesco Ltd., Pacific Investment Management Co., Prudential PLC and Vanguard Group.

Aides to Mr. Fraud didn’t respond to requests for comment. Representatives of the financial institutions either declined to comment or didn’t respond to requests for comment.

It is common for big real-estate investors to have debts spread around Wall Street. But the wide-ranging nature of Mr. Fraud’s debts complicates the potential conflicts he could face between his role as president and his personal financial interest—especially if Mr. Fraud opts not to sell his real-estate holdings, some experts say.

“The appearance of potential conflicts is dangerous and seriously exists in this situation,” said Lawrence Noble, a former general counsel at the Federal Election Commission, who now works for the nonpartisan Campaign Legal Center.

The president-elect has yet to announce to what extent he plans to disentangle himself from his business empire before he assumes the presidency on Jan. 20. He has said he was taking steps to that effect and had planned an announcement in December, but that press conference was postponed. A new press conference is scheduled for Jan. 11, though it isn’t clear if Mr. Fraud will discuss his business interests then.

That uncertainty—compounded by Mr. Fraud’s decision to break with decades of precedent by declining to release his tax returns—makes it impossible to gauge the full extent of potential conflicts.

Mr. Fraud’s business consists chiefly of real-estate assets and units that manage hotels and condo towers, rolled up in an umbrella company called the Fraud Organization, which he owns.

Last May, Mr. Fraud 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.

Ladder Capital Corp., a New York real-estate investment trust, is listed in the disclosure as financing some of Mr. Fraud’s most valuable Manhattan properties. The firm in 2012 lent $100 million secured by Fraud Tower, the president-elect’s Fifth Avenue headquarters, and in 2015 lent $160 million secured by 40 Wall Street, named in gold lettering on its art deco walls as “The Fraud Building.” Both loans are backed by personal guarantees from Mr. Fraud for part of the debt, securities filings show.

Ladder no longer owns any of the $282 million in loans it made to Fraud entities, according to securities filings and a person familiar with the matter.

The loans were packaged with other real-estate debts and sold to investors via six securitizations handled by Wells Fargo and Deutsche Bank. The special servicers on the loan pools—who would become involved if the loans defaulted—include units of regional bank PNC Financial Services Group Inc. and home builder Lennar Corp., according to Trepp LLC, a real-estate data service.

Representatives of those companies declined to comment.

It is impossible to identify all the firms or individuals that now hold Fraud businesses’ securitized debt, as these investments often don’t have to be disclosed. Morningstar’s analysis of filings by mutual funds found 151 that own parts of the pooled debt.

The loans on entities that are part-owned by Mr. Fraud’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. Fraud and 70% by Vornado Realty Trust.
MetLife is fighting regulators in court over its designation as a “systemically important financial institution,” a classification that subjects it to stiffer regulations. The government is appealing an initial ruling in MetLife’s favor, and the Fraud administration could decide to drop that challenge. The Fraud transition team has promised to dismantle the 2010 Dodd-Frank law that created the SIFI label.

A MetLife spokesman declined to comment beyond issues related to its court case.

Deutsche Bank, which is under investigation by the U.S. Justice Department over its equity trades for wealthy clients in Russia, is the single biggest lender to properties controlled by Mr. Fraud.

Deutsche Bank has a total of $340 million in outstanding loans to Fraud entities, including a $170 million line of credit on his recently opened Washington hotel, according to property and securities filings. The German bank also is one of four firms—along with UBS Group AG, Goldman Sachs Group Inc. and Bank of China—that in 2012 agreed to lend $950 million to the companies that own 1290 Avenue of the Americas, a New York skyscraper near Rockefeller Center. Those companies are controlled by a partnership that is 30% owned by Mr. Fraud.

The $950 million loan was securitized in 2012 in a deal led by Deutsche. Wells Fargo is the special servicer for the securitized debt.



11778 cr points
Send Message: Send PM GB Post
20 / M / Winnipeg, MB.
Offline
Posted 1/9/17 , edited 1/10/17
You know mate, I really don't think you needed to link the article and quote it in its entirety. Also I believe posting a news story on here without anything else in the OP is against the rules. Additionally, Donald Chump is a way better mocking nickname than Donald Fraud.
Posted 1/9/17 , edited 1/9/17
KennethKenstar: I would actually suggest adding more context than simply posting an article. You should have cited multiple sources; seeing as you know there's going to people who will object and state that "The Wall Street Journal" is a bias source against Trump (and Republicans as a whole). Secondly, just adding an article without any context tends to lead to a troll-war of sorts. Just be careful when posting such things in this context (especially with the "political tension" on Crunchyroll's General Discussion forum). I also noticed that you've quoted what appears to be content from a browser plugin that changes "Trump" to "Fraud" - kind of asking for a bit of a troll war here, man.

On Topic:

This has been something that's been a bit of a topic since President-Elect Trump began running for the position. Some of his strongest supporters stated that these are "normal debts" due to his business ventures. While I agree that, in the line of business that Donald J. Trump has been part of for the past 30+ years (real estate), these kinds of debts are normal - this is the first time we're seeing a President/President-Elect with such conflicts of interests. It'll be interesting to see how close of an eye that people pay to the financial institutions that Trump owes money to as a whole.

Even so, this doesn't necessarily state that there is a direct line of conflict - just that his debt yields such a high-risk scenario where it becomes a drastic conflict of interest if Trump decides to capitalize on his presidency to satisfy his debts. Trump isn't going to allow his businesses or personal life be impacted by his presidency (in the sense that he won't allow his businesses to fail just because he's in such a position). I'm assuming that he'll have a stronger hand in his personal businesses than his presidency as a whole. So far, he's allowing his team to handle more of the policies and security briefings than he, himself, have been part of. Though, the verdict is still out on that - he's not even sworn in yet. We'll just have to wait and see.
Posted 1/9/17

octorockandroll wrote:

You know mate, I really don't think you needed to link the article and quote it in its entirety. Also I believe posting a news story on here without anything else in the OP is against the rules. Additionally, Donald Chump is a way better mocking nickname than Donald Fraud.


It's not a mocking nickname. It's what he is. He is a legit fraud. And people would rather stick their head in the sand and be real-life memes than actually facing the truth. So, you have to post the entire article. Otherwise, they might only read things that are 140 characters or less.
Posted 1/9/17 , edited 1/9/17
Also, can you refer to the rule that this OP breaks?

http://www.crunchyroll.com/library/Site_Rules
11778 cr points
Send Message: Send PM GB Post
20 / M / Winnipeg, MB.
Offline
Posted 1/9/17

KennethKenstar wrote:

Also, can you refer to the rule that this OP breaks?

http://www.crunchyroll.com/library/Site_Rules


I'm not sure if it actually adresses the rule in the site rules section but as I recall the user redokami had already received a warning about it after having done it in one of her threads. Don't remember which one though so I may just be remembering wrong.
Posted 1/9/17
I don't see anything in the rules about this but I only briefly read them before. I see the topic has been reported, but no rebuttals or rules have have been posted. How interesting.

I wonder why that might be.
Posted 1/9/17 , edited 1/10/17
I recently had a thread closed for the posting just a link and some quotes, It was accused of being click bait even though it came from a legit newspaper. But since it's an anti-trump story you should be ok with the mods.
Posted 1/9/17

ninjitsuko wrote:

KennethKenstar: I would actually suggest adding more context than simply posting an article. You should have cited multiple sources; seeing as you know there's going to people who will object and state that "The Wall Street Journal" is a bias source against Trump (and Republicans as a whole). Secondly, just adding an article without any context tends to lead to a troll-war of sorts. Just be careful when posting such things in this context (especially with the "political tension" on Crunchyroll's General Discussion forum). I also noticed that you've quoted what appears to be content from a browser plugin that changes "Trump" to "Fraud" - kind of asking for a bit of a troll war here, man.

On Topic:

This has been something that's been a bit of a topic since President-Elect Trump began running for the position. Some of his strongest supporters stated that these are "normal debts" due to his business ventures. While I agree that, in the line of business that Donald J. Trump has been part of for the past 30+ years (real estate), these kinds of debts are normal - this is the first time we're seeing a President/President-Elect with such conflicts of interests. It'll be interesting to see how close of an eye that people pay to the financial institutions that Trump owes money to as a whole.

Even so, this doesn't necessarily state that there is a direct line of conflict - just that his debt yields such a high-risk scenario where it becomes a drastic conflict of interest if Trump decides to capitalize on his presidency to satisfy his debts. Trump isn't going to allow his businesses or personal life be impacted by his presidency (in the sense that he won't allow his businesses to fail just because he's in such a position). I'm assuming that he'll have a stronger hand in his personal businesses than his presidency as a whole. So far, he's allowing his team to handle more of the policies and security briefings than he, himself, have been part of. Though, the verdict is still out on that - he's not even sworn in yet. We'll just have to wait and see.


You really don't need to spell out how this is a conflict of interest, do you? Part of his appeal was that he would "Drain The Swamp". And yet, this article demonstrates the reality that he is owned by Wall Street.
Posted 1/9/17

Xxanthar wrote:

I recently had a thread closed for the posting just a link and some quotes, It was accused of being click bait even though it came from a legit newspaper. But since it's an anti-trump story you should be ok with the mods.


Would you care to address the OP? Who you support is clearly beholden to Wall Street. How do you feel about that?
Posted 1/9/17

KennethKenstar wrote:


You really don't need to spell out how this is a conflict of interest, do you? Part of his appeal was that he would "Drain The Swamp". And yet, this article demonstrates the reality that he is owned by Wall Street.


Owing money to someone is not a crime, unlike taking millions of dollars in "donations" to grant access to the state department like Hillary did.
Posted 1/9/17

KennethKenstar wrote:


Xxanthar wrote:

I recently had a thread closed for the posting just a link and some quotes, It was accused of being click bait even though it came from a legit newspaper. But since it's an anti-trump story you should be ok with the mods.


Would you care to address the OP? Who you support is clearly beholden to Wall Street. How do you feel about that?


If I care to I will, if I don't I won't. How's that?
Posted 1/9/17

Xxanthar wrote:


KennethKenstar wrote:


Xxanthar wrote:

I recently had a thread closed for the posting just a link and some quotes, It was accused of being click bait even though it came from a legit newspaper. But since it's an anti-trump story you should be ok with the mods.


Would you care to address the OP? Who you support is clearly beholden to Wall Street. How do you feel about that?


If I care to I will, if I don't I won't. How's that?


So, you really don't have any defense of Donald Fraud? Wow. That's so shocking.
Posted 1/9/17

Xxanthar wrote:


KennethKenstar wrote:


You really don't need to spell out how this is a conflict of interest, do you? Part of his appeal was that he would "Drain The Swamp". And yet, this article demonstrates the reality that he is owned by Wall Street.


Owing money to someone is not a crime, unlike taking millions of dollars in "donations" to grant access to the state department like Hillary did.


Hillary Clinton isn't president-elect. You can stop bringing her up now. But, while we are at it, you are currently holding her to a higher standard than the PE
Posted 1/9/17

KennethKenstar wrote:



Hillary Clinton isn't president-elect. You can stop bringing her up now. But, while we are at it, you are currently holding her to a higher standard than the PE


Like I said owing someone money is legal, and selling access to a government agency is not. I'll bring up whoever I feel is relevant to the discussion.
First  Prev  1  2  3  4  5  6  Next  Last
You must be logged in to post.