Deutsche Bank, Signature Bank cut ties with President Trump

Though stripped of his Twitter and Facebook accounts Donald Trump does have options for a smaller reach

Though stripped of his Twitter and Facebook accounts Donald Trump does have options for a smaller reach

Deutsche Bank will cease its longstanding relationship with outgoing USA president Donald Trump, The New York Times reported on Tuesday.

"Deutsche Bank, which has been Mr. Trump's primary lender for two decades, has decided not to do business with Mr. Trump or his company in the future, according to a person familiar with the bank's thinking".

The news, first reported by the New York Times, follows last week's deadly riot at the US Capitol.

Social media companies blocked him, and New York City announced it was looking to cancel contracts with Trump for skating rinks and a golf course in the Bronx.

President Trump said Tuesday during a visit to the border wall in Texas that he bore no responsibility for fomenting the insurrection and warned that efforts to impeach him over his comments threatened only to further divide the country, 'which is very unsafe'.

The move is the latest example of corporate backlash against the president after his supporters vandalised the Capitol in a brazen assault that left five people dead.

"We witnessed the president of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty", said one bank that cut ties, New York's Signature Bank, once so close to Trump it put his daughter Ivanka on its board.

Deutsche Bank's break with Trump follows years of intense public scrutiny and litigation triggered by its association with the president.

The moves by Trump's banks are the clearest signs yet of looming financial blowback to his business empire as he leaves office facing widespread repudiation for stoking the January 6 mob attack that disrupted Biden's election certification.

A revocable trust in the president's name also has a money market account at Signature Bank, according to the filing. "It is something that they have been doing to us and others for years", said Trump, who along with his brother, Donald Jr., have been running the family company since their father took office four years ago.

A Capital One spokesperson said the bank does not discuss current or former customer relationships. The bank's representatives didn't respond to a message seeking comment.

However, a spokesman for First Republic told CNN Business that single Mr Trump account was inactive and is now closed. "We're going to decline to comment", said bank spokesperson Amy Bonitatibus.

The loss of future business with Deutsche Bank is potentially a much bigger blow.

Deutsche Bank is Trump's biggest lender, with about US$340 million in loans outstanding to the Trump Organization, the president's umbrella group that is now overseen by his two sons, according to Trump's disclosures with the US Office of Government Ethics dated July 31 past year, plus banking sources. Trump owes the Frankfurt-based lender more than $300 million.

Lending by Deutsche Bank to Trump and his companies totals more than US$2.5 billion, the New York Times reported in 2019.

The Trump Organization now still has three loans worth about $300 million outstanding with the bank.

Trump's crisis is especially profound with his banking situation. The loans mature in 2023 and 2024.

Trump supporter Jake Angeli (right) confronts a police officer inside the US Capitol building.

Christiana Riley, the head of Deutsche Bank's U.S. operations, condemned the Jan 6 violence in Washington in a post on LinkedIn last week.

Trump's relationship with Deutsche Bank has sparked numerous probes in the United States, including in NY, where the Manhattan District Attorney is investigating whether Trump committed financial crimes as he sought loans.

Investigators are looking into whether the Trump Organisation misled or defrauded the lender by inflating the value of some of its assets, according to court filings.

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