Quantcast
Connect with us

Sketchy merger for Trump’s favorite foreign bank might hurt one country’s economy

Published

on

President Donald Trump’s favorite lender, Deutsche Bank, might be in trouble after years of sketchy business practices.

A recent Bloomberg report explained that after Deutsche Bank AG decided not to take over Commerzbank AG, both companies are searching for alternatives to solve their “pathetic returns.”

Benefits of the merger would not offset “additional execution risks, restructuring costs and capital requirements,” the company decided, according to two Bloomberg opinion columnists. They noted that from the beginning the merger looked like a risky and expensive idea that wouldn’t fix the “structural inefficiencies in German banking.” At the same time, it revealed the trading activities of the bank and sub-par profits from lending.

ADVERTISEMENT

It’s unclear if most loans were as problematic as Trump’s, but the president was caught using grossly inflated appraisals for his properties to put up as collateral. In one case, Trump claimed his building was ten stories taller than it actually was, something the bank’s assessor could have verified by looking up at the building. In another, Trump grossly embellished the size of his winery.

In most cases, bank employees would be sent to verify the claims, but if that happened in this case, it wasn’t reflected in Trump’s financial documents. If other major customers got the same treatment, it could explain the company’s problem with anemic profits.

“After multiple attempts at a reboot in recent years, Deutsche Bank will probably need to do the next stage of the restructuring on its own,” Bloomberg reported.

Huge job cuts (as high as 30,000 employees) added to the fears chief regulators had about the merger.

“While Germany may have full employment, and job losses in finance may attract less sympathy than other industries, the deal couldn’t work without unions on board and they were vigorously opposed at both banks,” the report explained.

ADVERTISEMENT

Meanwhile, back in the United States, Deutsche Bank is dealing with subpoenas for one of their biggest clients.


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

2020 Election

MSNBC’s Morning Joe scorches GOP senators for following Trump ‘over the cliff’ to election losses

Published

on

MSNBC's Joe Scarborough hammered Senate Republicans for following President Donald Trump "over a cliff."

The "Morning Joe" host said the GOP had suffered losses in every election cycle since Trump won, and he said the president was a threat to his own party.

"All Republican incumbents who are endangered politicians," Scarborough said. "What bargain did they make that is worth following this man over the cliff? Who, right now, in early June, is on his way to losing in a landslide of his own?"

"These polls that we're going to show you in a minute are just a snapshot of where we are at the beginning of June," he added. "Things can change, but if they do change, it will be the first time in almost four years that elections have broken Donald Trump's way."

Continue Reading

Breaking Banner

Donald Trump is no longer president: Robert Reich

Published

on

You’d be forgiven if you hadn’t noticed. His verbal bombshells are louder than ever, but Donald J. Trump is no longer president of the United States.

By having no constructive response to any of the monumental crises now convulsing America, Trump has abdicated his office.

He is not governing. He’s golfing, watching cable TV, and tweeting.

How has Trump responded to the widespread unrest following the murder in Minneapolis of George Floyd, a black man who died after a white police officer knelt on his neck for nine minutes as he was handcuffed on the ground?

He has incited more police violence. Trump called the protesters “thugs” and threatened to have them shot. “When the looting starts, the shooting starts,” he tweeted, parroting a former Miami police chief whose words spurred race riots in the late 1960s.

Continue Reading
 

Breaking Banner

Trump-loving Minneapolis police union boss calls the cops on a reporter for knocking on his door

Published

on

Lt. Bob Kroll, the Trump-loving president of the Police Officers Federation of Minneapolis, called the police this week on a Washington Post reporter for the purported offense of knocking on the door of his house.

In an effort to get Kroll to respond to the charges that were filed this week against all four Minneapolis police officers involved in George Floyd's death, the Post sent one of its reporter to Krolls house after multiple other requests for comment went unanswered.

"A Washington Post reporter who knocked on Kroll’s door was soon pulled over by a police officer who said that Kroll had reported suspicious activity on his front porch and that 'he doesn’t want any press,'" the paper reports.

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image