Wednesday, November 25

Trump is forgiven $ 270 million in debt


Washington (CNN) — US President Donald Trump has been forgiven a debt of more than $ 270 million since 2010 after he failed to pay his lenders for a skyscraper development in Chicago, The New York Times reported Tuesday.

An analysis of his tax records by the newspaper shows that after the Trump International Hotel & Tower in Chicago encountered financial problems, the big banks and hedge funds considerably reduced the pressure on Trump, giving him years of extra time to pay his bills. debts, much of which was eventually forgiven.

And while previously unreported forgiven debts would generate a large tax bill, Trump appears to have managed to pay almost no federal income taxes, the newspaper reported, in part because of significant financial losses his other companies were suffering.

The Trump Organization’s legal director, Alan Garten, told the newspaper that the organization and Trump had paid all necessary taxes on the discharged debts.

“These were all arm’s length transactions that were made voluntarily between sophisticated parties many years ago in the wake of the 2008 global financial crisis and the resulting collapse of the real estate markets,” Garten said.

However, news of Trump’s extensive forgiven debts deals a further blow to the brand of business mogul on which the president has built his political career, just a week away from Election Day.

Trump’s debts

According to The New York Times, Trump arranged for two of his limited liability companies, or LLCs, to borrow more than $ 700 million for the development of Chicago and turned to Deutsche Bank for most of the money.

The bank agreed to lend US $ 640 million for the project, the newspaper said, but after construction delays, the loan expired while parts of the building were still unfinished.

While Deutsche Bank initially granted Trump an extension to repay the loan, after he rejected a request for an additional extension, Trump sued the bank alongside Fortress Investment Group, which had provided a $ 130 million loan for the project, and other banks and hedge funds that had bought parts of those loans, the newspaper reported.

Trump, according to the newspaper, accused Deutsche Bank of having engaged in “predatory lending practices.”

The bank responded with its own lawsuit demanding repayment of the loan.

In July 2010, Deutsche Bank, Fortress and Trump reached a private agreement without disclosing the terms, the newspaper reported.

But Trump’s federal tax returns and a loan document show he had $ 270 million in project debt forgiven.

New details

The new details pulled from the president’s tax records are based on earlier reports from The New York Times that detailed how Trump failed to pay federal income taxes in 10 of the 15 years beginning in 2000 because he reported losing significantly more than he did. won.

In both the year he won the presidency and his first year in the White House, Trump paid just $ 750 in federal income taxes, the newspaper reported.

Trump has denied the New York Times story and claimed he pays “a lot” in federal income taxes.

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