Trump Tower’s $100 million mortgage was the subject of heated speculation after Trump launched a coup against the US government that left people dead in the US Capitol building, with some innocent souls wondering if Trump could ever find a bank seedy enough to work with a rioter. Things looked even bleaker when, earlier in the year, Donald Trump’s longtime auditors severed all ties with Trump and announced that they would no longer endorse the financial statements of the last 10 years of the Trump Organization, the way in which that Wall Street announces that they found something so incomplete that they absolutely want none of it, whether Trump’s checks are paid or not, and that they have no intention of going to jail for it.
But it turned out that the mortgage on Trump Tower was not a problem for Trump. Just days after Trump’s auditors fired him and announced that his company’s financial statements screamed between the lines, “Extremely likely to be corrupt,” Trump Tower secured a $100 million refinance signed with Axos, a small formerly known bank. as the “Internet Bank of the USA” and is currently run by a former Indymac executive who migrated to the company just before the 2008 Wall Street debacle “we nearly ruined the entire world economy.”
Okay, okay, it’s a little weird that the Trump Tower mortgage was taken over by a bank with an online presence but no real branches, one headed by an executive who managed to get back on his feet despite his previous institution not only being collapsed, but creating a crater so spectacular that its faults will be a permanent mention in new United States history textbooks. But what we can infer from this, probably, is that none of the banks Trump had previous relationships with wanted to deal with him despite the huge amount of money involved, while the new company thought it would still be worth that risk. additional.
But the NBC News investigation also revealed some other strange things at play here. Stuff that seems a bit sketchy to us laymen, but can also plausibly be the way all of Wall Street tends to work these days — at least, that’s how the company is trying to sell it.
Strange things ranging, for example, from the two former employees who sued the company after they were fired for pointing out sketchy behavior ranging from allegedly hiding problems with unstable loans…
…to offering “cash recovery” loans of a kind that can facilitate international money laundering…
… to partner with other businesses to offer the small business equivalent of “payday loans” — loans that evade typical regulations that limit the amount of interest those businesses can charge.
Which, okay, sounds a bit weird! The ‘hiding problems with unstable loans’ part comes straight out of the 2008 financial crisis, but I imagine none of us really expect the banks to be not dive back into economy-breaking behaviors that earn big bonuses before it all goes to hell.
It’s a bit strange that the company has been accused of making things too easy for money launderers, given that Trump Tower and other Trump real estate ventures have been known for decades as hubs for Russian money laundering. But then again, real estate laws have been carefully crafted to facilitate money laundering, so can we still consider them “weird”? Or is it just business as usual?
And the last one, the charging of grotesque interest rates through loopholes in the laws that prohibit such things, which NBC refers to as an alleged “bank rent scheme,” is a bit weird just because it turns out that it was the Trump administration that implemented the rule that allows it, and the Biden administration is already rescinding it for being obviously incomplete. So, um, bonus points to them for managing to make some profit from a fleeting rule change that was meant to be withdrawn again the moment a not-incomplete administration took over. I suppose.
But it doesn’t even end there. NBC News also notes that the company has a history of going after anonymous bloggers who draw attention to its quirks and that the company’s boss responded to an auditor’s complaint by suing him. Y the auditor’s mother for taking “sensitive” information, which, well, bringing in the guy’s mother definitely ranks high on the old finance company meter of weirdness, but in a world with Elon Musk, Peter Lawsuitguy, and a man who manipulates every one of his famous shit pillows with conspiracy theories promoting sedition, barely qualifies. We just have to live with the knowledge that our superior rich are super, super disgusted with our common rabble views these days.
The question NBC News is raising with all of this is what the hell are we outsiders supposed to be doing with all of this? Donald Trump had his bacon saved mere days after his company’s auditing firm publicly told the world that something grossly sketchy was going on with his accounting, and one look at the low-key company that bailed him out suggests they’re both a company that specializes in loans that are a little sketch Y has former employees who claim they were fired for pointing out the sketch, which makes the company sound like it went to high school with Eric Trump or something.
Incidentally, the company’s defense against charges by former employees that it is being too permissive of potential money laundering behavior is an assertion to NBC News that such loans are subject to “a full know-your-customer investigation.” before approval. it’s OK. Sure, that would be responsible behavior. It’s hard to imagine a company staying in business for long if it didn’t do such things.
I’m not sure how a company like that would miss such a big red flag like “just days before I signed this, the company we gave a loan to was fired by their own auditors for up to ten years of misleading financial reporting.” or fraudulent”. statements”, but none of us here are bankers, and we don’t know how this works. it’s all a bit weird.
It’s going to be even weirder if some company that once called itself “Internet Bank” ends up foreclosing on Trump Tower if Donald Trump’s finances collapse yet again, but we’re not going to put odds on that either.