Major global bank Deutsche Bank will no longer do business with US President Donald Trump, as the repercussions of last week’s violence in Capitol Hill continues to reverberate, Reuters reported.
Deutsche Bank is said to be wary of reputation loss that it has suffered due to the professional relationship with the president and negative press coverage that it has faced due to it.
Deutsche Bank has lend $340 million in loans to the Trump Organization, an umbrella group that owns about 500 business entities of which Trump is the sole or principal owner. The bank has over the years lent Trump an estimated amount of more than $2 billion.
According to reports, a Deutsche Bank management committee that oversees reputational and other risks for the lender in the Americas region bank, may have even concluded that there was no other way to end its relationship with Trump before the loans become due in the next few years, other than forgiving the huge sum.
Democratic Senator Elizabeth Warren had previously called for an investigation into Deutsche Bank over its money laundering controls and has demanded answers from the German banking major about its relationship with Trump and his family
Another financial institution, Signature Bank, which helped finance Trump’s Florida golf course, is also distancing himself from the outgoing president.
“We have never before commented on any political matter and hope to never do so again,” Signature said in a statement.
“We believe the appropriate action would be the resignation of the president of the United States, which is in the best interests of our nation and the American people.”
Trump has two personal accounts with Signature, holding around US$5.3 million and has banked with Signature since at least 2011.
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