New York AG's Trump case reveals he had a huge breakup with one of the last banks that'll work with him

Donald Trump's businesses have filed for bankruptcy six times for five different companies. He has a reputation for not paying people, and the Trump Organization is under investigation by the New York attorney general for fraud.

BusinessInsider caught the information in Attorney General Letitia James' case against the Trump Organization she has accused of artificially inflating assets to qualify for bank loans and then deflating them to qualify for tax breaks or state and local tax benefits.

While Deutsche Bank has been Trump's lender for the past ten years, it appears that they are breaking up.

"Since Trump left office last year, the Frankfurt-based international bank — which has lent Trump far more than any other financial institution — has been steadily enforcing a 'managed exit,' as James' filing calls it, from a lucrative relationship with the former president stretching back to the 1990s."

Trump used the bank for his Washington, D.C. hotel, which was ultimately sold this year, zeroing out that loan.

After James announced her charges against Trump, he took to Fox host Sean Hannity to explain away the accusations as nothing.

"By the way, I paid them back," Trump said about the loan. "The banks made a lot of money. She's trying to defend banks that got paid off."

It's true that Trump ultimately paid them off, but it's not true that James is acting only on their behalf, in fact, she's also acting on behalf of the state and local governments who blessed Trump with tax incentives over the years. During his final six months in office, he was fighting a battle to stay in office, while Deutsche Bank was fighting just to ensure they got their money back. Trump's lawyers were keeping them in the dark. So, the bank threatened to default on the loan, which would send Trump to collections.

The report claimed that Deutsche Bank knew Trump was lying about the assets and would factor in the lies, but James alleged that Trump was committing "potential fraud" that the bank never knew about.

James "is currently investigating whether the Trump Organization and Donald J. Trump improperly inflated the value of Mr. Trump's assets on annual financial statements in order to secure loans and obtain economic and tax benefits," an Aug. 2020 court filing says.

A letter that was unsealed this week revealed that the bank was questioning what was going on with the probe and whether it was true that Trump had been lying about his personal net worth and if there was a fraud going on.

"Your prompt attention to these matters is appreciated," wrote the bank's head of private wealth management, Greg Khost, in a letter that was part of James' documents.

It was sent Oct. 29, 2020, but the Trump Organization's top lawyer, Alan Garten, wrote on Dec. 7, 2020, that they "only recently came to our attention ... we had not seen it before."

"Our company greatly values its relationship with Deutsche Bank, and certainly wishes to cooperate with DB whenever possible," the Trump Org lawyer explained.

The bank's lawyers sent another letter back.

"As you know, Donald J. Trump is required under the terms of his loan guarantees to provide annual financial statements to Deutsche Bank and to ensure that those statements 'are true and correct in all material respects,'" bank lawyer Gregory Candela wrote, citing the guaranty agreement for the $170 million loan for the Trump DC hotel.

Trump's lawyer promised to respond in short order but it took closer to three weeks and only after the Jan. 6 attack on the Capitol.

On May 27, 2021, James' filings showed that given the Trump Org failed to respond to their questions they were exiting the relationship with Trump's company. A year later, Trump was able to pay them back for Trump National Doral and what debt was left of the DC hotel.

Read all the details at Business insider.

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