Over the course of the holiday season, President Trump, despite his so-called determination to clean up Wall Street, was not acting in the best interest of the American people when he used the Christmas break as a distraction to pardon five mega-banks for fraud and corruption. What is most despicable about this whole ordeal is the amount of money Trump owes those he granted grace to.
Trump has used Deutsche Bank’s services since the 1990s, and it has been reported by the Financial Times that the President has outstanding loans with them in the surplus of $130 million. However, the report states that the loans, secured in properties in Miami, Chicago and Washington, add up to a much larger number – and more like south of $300 million.
Reportedly, Deutsche was the only bank willing to lend Trump money following the multiple bankruptcies facing his companies. An analysis from the Wall Street Journal shows that Trump has received over $2.5 billion in loans from Deutsche Bank over the last 20 years. The concerns regarding Trump’s banking ties as a conflict of interest have now suddenly become clear, and with the evidence to support those concerns, ears are beginning to perk up.
Over Christmas, the Federal Register announced that waivers were being administered to Citigroup, JPMorgan, Barclays, UBS and Deutsche Bank by the Trump administration. They were all pardoned despite the fact that each of them were facing charges of corruption and fraud.
Involved in what is called a LIBOR scandal, the banks colluded to purposefully depress the rate at which they paid out investments. By throttling the London Interbank Offered Rate (LIBOR) at the start of the 2007 economic crisis, the mega-banks boosted earnings, giving customers a false sense of gains.
Deutsche Bank, pleading guilty to wire fraud, went on to reach a $7.2 billion settlement with the Justice Department in early 2017.
Trump’s latest decision to pardon the banks is drastically different from what he promised in his campaign – that he would be the one to stand up to Wall Street and demand the banks be held accountable to the public; but unfortunately his promises were all smoke and mirrors.
“I’m not going to let Wall Street get away with murder. Wall Street has caused tremendous problems for us. We’re going to tax Wall Street,” Trump stated during a campaign rally in January 2016. Trump’s position of power, combined with an endless number of networks and contacts in the financial industry, should be a clear-cut case of conflict of interest, don’t you think?
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