The storming of the Capitol last week by a pro-Trump mob will ratchet up the pressure on President Trump’s family business at a moment when some of his most lucrative assets were already suffering from the pandemic and facing looming debt payments.
One of the Trump Organization’s most loyal partners, German lender Deutsche Bank AG , is moving to distance itself from the president’s businesses and is unlikely to lend it more money, says a person familiar with the matter. The bank has lent the Trump Organization more than $300 million that will mature in 2023 and 2024, forcing the company to refinance the debt or pay it off by potentially selling assets.
Deutsche Bank was one of the few major financial institutions willing to do business with Mr. Trump because of his tumultuous financial history. Smaller banks also broke from the president. New York-based Signature Bank said it was closing two of President Trump’s accounts in response to the Washington riot. The accounts held about $5.3 million.
“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,” the bank said, urging Mr. Trump to resign.
The other risk to the Trump Organization is that some customers stop patronizing its businesses, in particular its hotels and golf courses. The company has tried to sell its Washington, D.C., hotel, but the pandemic made buyers wary. The hotel was popular with supporters of Mr. Trump and with organizations trying to seek favor from the president. Business had already been expected to decline there once Mr. Trump leaves office.