(Bloomberg) -- For more than a decade, Deutsche Bank AG was the single biggest lender to the Trump Organization. That may finally have changed in May.
The real estate company of former US President Donald Trump that month repaid two loans worth at total of $295 million to Germany’s largest lender, according to a lawsuit filed Wednesday by New York Attorney General Letitia James. There’s now only one loan left, a facility worth $45 million covering the Trump Chicago building, according to the suit.
James says Trump made “false and misleading” financial statements to Deutsche Bank to get better terms on his loans, resulting in interest rate savings between $85 million and $150 million for him. Trump has repeatedly denied wrongdoing.
“The bank takes its legal obligations seriously, including appropriately responding to authorized investigations and proceedings,” said a spokesman for Deutsche Bank. He declined to comment on details of the relationship with the Trump Organization.
Deutsche Bank built up a lucrative relationship with the firm in the years before Trump ran for president in 2016, but the exposure became a major headache when Democrats in Congress sought to subpoena documents on his dealings with the bank. Management in late 2016 became so concerned about the potential implication if the Trump Organization were to default that they discussed extending repayment dates, Bloomberg has reported.
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