DEBTS: Why Trump’s matter
When income tax returns showed that Trump paid only $750 in 2016 and zero in 10 other years, some people were shocked while others shrugged. But everyone should worry about his debts.
His loans are secured mainly by hotels, golf courses and commercial real estate that have losses rather than profits. Debt of $900 million comes due in the next few years and Trump creditors may ask for concessions antithetical to the interests of the USA.
As a partner in Vornado Realty Trust, he owes $447 million and the other original partners included Deutsche Bank and the state-owned Bank of China. No one knows who remaining partners are today.
Trump owes another $340 million to Deutsche Bank, a financial institution that was found guilty of laundering ill-gotten gains from Russia. See more from the Financial Times (Oct. 27) and New York State Department of Financial Services (2017).
CRAIG ROBERT MacPHEE
Professor Emeritus of Economics