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Why did Deutsche Bank keep lending money to Donald Trump — even after he defaulted on loans worth hundreds of millions and sued it?

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Whispers of money laundering have swirled around Donald Trump’s businesses for years. One of his casinos, for example, was fined $10 million for not trying hard enough to prevent such machinations. Investors with shady financial histories sometimes popped up in his foreign ventures. And on Sunday, The New York Times reported that anti-money-laundering specialists at Deutsche Bank internally flagged multiple transactions by Trump companies as suspicious. (A spokesperson for the Trump Organization called the article “absolute nonsense.”)

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The remarkably troubled recent history of Deutsche Bank, its past money-laundering woes — and the bank’s striking relationship with Trump — are the subjects of this week’s episode of the “Trump, Inc.” podcast. The German bank loaned a cumulative total of around $2.5 billion to Trump projects over the past two decades, and the bank continued writing him nine-figure checks even after he defaulted on a $640 million obligation and sued the bank, blaming it for his failure to pay back the debt.

“Trump, Inc.” isn’t the only one examining the president’s relationship with the bank. Congressional investigators have gone to court seeking the kind of detailed — and usually secret — banking records that could reveal potential misdeeds related to the president’s businesses, according to recent filings by two congressional committees. The filings were made in response to a highly unusual move by lawyers for Trump, his family and his company seeking to quash congressional subpoenas issued to Deutsche Bank and Capital One, a second institution he banked with. Trump’s lawyers have contended that the congressional subpoenas “were issued to harass” Trump and damage him politically.

Earlier today, a federal judge in New York declined to issue a preliminary injunction to block the subpoenas. During the hearing in which he delivered that ruling, U.S. District Judge Edgardo Ramos said Congress is within its rights to require the banks to turn over Trump’s financial information, even if the disclosure is harmful to him.

For their part, the filings for the House Financial Services and Intelligence committees say they are “investigating serious and urgent questions concerning the safety of banking practices, money laundering in the financial sector, foreign influence in the U.S. political process, and the threat of foreign financial leverage, including over the President.” The inquiry includes investigating whether Trump’s accounts were involved in two large schemes involving Deutsche Bank and Russian clients.

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The committees want to determine “the volume of illicit funds that may have flowed through the bank, and whether any touched the accounts held there by Mr. Trump, his family, or business.” Links to Russia will get a particularly close look. “The Committee is examining whether Mr. Trump’s foreign business deals and financial ties were part of the Russian government’s efforts to entangle business and political leaders in corrupt activity or otherwise obtain leverage over them,” the filing stated.

The podcast explores some eyebrow-raising Trump-related moves by the bank:

  • Deutsche Bank’s private wealth unit loaned Trump $48 million — after he had defaulted on his $640 million loan and the bank’s commercial unit didn’t want to lend him any further funds — so that Trump could pay back another unit of Deutsche Bank. “No one has ever seen anything like it,” said David Enrich, finance editor of The New York Times, who is writing a book about the bank and spoke to “Trump, Inc.”
  • Deutsche Bank loaned Trump’s company $125 million as part of the overall $150 million purchase of the ailing Doral golf resort in Miami in 2012. The loans’ primary collateral was land and buildings that he paid only $105 million for, county land records show. The apparent favorable terms raise questions about whether the bank’s loan was unusually risky.
  • To widespread alarm, and at least one protest that Trump would not be able to pay his lease obligations, Deutsche Bank’s private wealth group loaned the Trump Organization an additional $175 million to renovate the Old Post Office Building in Washington and turn it into a luxury hotel.

Like Trump, Deutsche Bank has been scrutinized for its dealings in Russia. The bank paid more than $600 million to regulators in 2017 and agreed to a consent order that cited “serious compliance deficiencies” that “spanned Deutsche Bank’s global empire.” The case focused on “mirror trades,” which Deutsche Bank facilitated between 2011 and 2015. The trades were sham transactions whose sole purpose appeared to be to illicitly convert rubles into pounds and dollars — some $10 billion worth.

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A spokesperson said Deutsche Bank has increased its anti-financial-crime staff in recent years and is “committed to cooperating with authorized investigations.” The bank said it has policies in place to address the potential for conflicts of interest, including “special measures with respect to clients that hold public office or perform public functions in the U.S.”

The bank was “laundering money for wealthy Russians and people connected to Putin and the Kremlin in a variety of ways for almost the exact time period that they were doing business with Donald Trump,” Enrich said. “And all of that money through Deutsche Bank was being channeled through the same exact legal entity in the U.S. that was handling the Donald Trump relationship in the U.S. And so there are a lot of coincidences here.”

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Listen to the episode.

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Here’s why Trump contradicted his own White House on the Supreme Court rulings

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Following the Supreme Court's pair of 7-2 decisions rejecting President Donald Trump's claim to have absolute immunity from subpoenas, he blasted the ruling on Twitter, claiming he being unfairly targeted and the victim of "prosecutorial misconduct." However, White House Press Secretary Kayleigh McEnany released a statement saying that "President Trump is gratified by today’s decision."

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‘They deserve it’: Republican strategist tells GOP it’s their own fault for going down with Trump because ‘they know better’

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Republican strategist Susan del Percio said that there is no excuse for GOP members who failed to do the right thing and fight back against President Donald Trump when they had the opportunity.

Speaking to MSNBC's Joy Reid Thursday, del Percio called Trump "the anchor" around the GOP's necks, "dragging them down."

"But, you know what, they deserve it," she continued. "There are Republicans out there that deserve this because they know better. They should have been better on impeachment. They should have been holding him accountable all along. Now they are scared and worried about themselves. Well, boohoo, you brought it on. there's no excuse."

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‘The monarch has taken a body blow’: Ex-prosecutor explains why Court ruling is devastating for Trump

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On MSNBC Thursday, former federal prosecutor John Flannery broke down the implications of the Supreme Court's ruling against President Donald Trump on immunity from subpoenas.

"I think what it says is that the monarch has taken a body blow as a result of what will be an historic decision, as we've indicated," said Flannery. "I think that the position of the DA in New York is very special, because he can speed this up in a way that the House can',t and has a specific strength, I think, in this case, that it is criminal."

"The most significant thing about it is this is the first Supreme Court case in which there's ever been agreed that a prosecutor could subpoena a president," added Flannery. "Prior prosecutions have been federal, that have been treated by the Supreme Court. So this is a big difference. The majority of the court, 7-2, basically said, from 1740 on, the public is entitled to the testimony, to the evidence of any person. They said that the documents — the question is the character documents, not the character of the person. In this case, what we have is a situation which I bet that the DA is going to go to the court as soon as possible, move to compel an appearance to their subpoena, and going to have the discussion as to what if anything may be limited or excluded and get production as quickly as possible."

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