Elonian convictions do not make life easier. The one of donald trump It can complicate your ability to travel to some countries, carry a gun, and, most importantly, obtain loans.
“I think a bank would say, ‘Do I need this noise?’”explains John Petrovsky, a commercial real estate industry veteran who once helped finance a Trump loan in Chicago. “You have a guy who is controversial. You have a guy convicted of a serious crime. Whether you fall on the side that it’s fake news or the side that it’s a real problem, either way, it’s noise. And banks don’t need noise.”. Would Petrovski lend money to Trump again? “It would be impossible,” he says.
The convictions are not the only problem. Several Trump companies have filed for bankruptcy in the past and the former president still has a cloud of legal problems hanging over him. Most of his net worth is invested in shares of a social media company with shaky finances, and much of the rest is in illiquid real estate holdings. Previous loan documents required Trump to certify that he was not a criminal or under investigation.
However, Trump has a history of finding lenders willing to deal with him despite his reputation. Mike Offit, who helped start Trump’s relationship with Deutsche Bank years ago, says Trump could probably structure things in a way that gave more confidence to institutions. “Maybe he brings a stranger.”suggests Offit, “so that it’s not just his son running the company, but that we have someone with a reputation in the business who is a legitimate CEO”.
Even if traditional American banks stop lending to Trump, a foreign lender or political supporter could take advantage of the opportunity. The former president will probably look for lenders soon, if he hasn’t already. A loan of approximately $120 million against 40 Wall Street matures in July 2025.
